While working at Bank of Montreal I was amazed at how many people were so inclined to convenience that when it was time for their mortgage to be renewed they never even tried to get a better rate. Every year thousands of homeowners receive a letter that asks them to circle a term for their mortgage and send it back to the lender and all their renewal troubles are taken care of.
Most of these lenders are offering their clients market rates that are often .35-.5% higher than competing rates. Now you may be saying
"Is it really worth going through the trouble to speak to a mortgage consultant to try and get a lower rate?"
For that question I’ll let you be the judge, but please read this example.
We have a couple that are renewing their mortgage and the bank just sent them a letter containing a market rate of 3.65%. The couple has $350,000 owing on their mortgage and 20 years left on the amortization. If this couple were to do another 5-year fixed term at the 3.65% market rate their monthly payments would be $2056.94 and by the end of their term they will have spent $58,204.13 on interest, and the balance would now be at $284,787.72.
Now if this couple spoke to their mortgage consultant and he found them a more competitive rate at 3.45% over a 5-year fixed term would it be worth it to switch lenders just for the .2% rate? Let's take a look. The new monthly payment would be $2020.87, the amount of money spent on interest 54,912.67, and the balance is now at $283,659.99.
Although these changes may not seem significant, when you sum the total amount of savings over the 5 year period these clients have saved a total of $6583.39!!
If your mortgage is up for renewal, or you have some questions I want to speak with you! Send me an email or contact me @ 778-215-4121. I’m happy to look at your mortgage scenario and see if my services will help keep money in Your pocket!
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