A conversation can save you thousands! Please pick up the phone and call me before signing any automatic mortgage renewal letter! I will let you know within minutes if the offer is competitive, and after asking a few questions about your 5 year plan, I will let you know if it’s the right product for you!
You compare prices of shoes – don’t miss a REAL savings opportunity and let me compare your options on what is one of the biggest investments of your life!
In this past week, I have helped clients who were about to: 1) renew into a much higher rate interest mortgage than they should have 2) renew a maxed Home Equity LOC that is at a much higher interest rate that compounds MONTHLY like a credit card 3) renew a high interest 2nd mortgage that should have been blended into a lower rate 1st mortgage 4) renew into a fixed term mortgage even though they were planning on selling their property (which would have resulted in a high IRD penalty instead of much smaller 3 month’s interest penalty with time flexibility).
These are just a few real world examples of ‘you don’t know what you don’t know,’ and this can translate into very real savings of your hard-earned dollars! I spend all day researching best solutions and mortgage products for my clients, and make it my mission to know what will work for each individual’s needs and goals.
I make the process as quick and seamless as possible, walking you through the best options and differences between them, educating you on what these differences will mean for you, and help you make the decision that you feel most comfortable with.
A few questions to ask yourself as your renewal approaches:
- Is there any higher interest debt that should be consolidated into my lower interest mortgage?
- Could we use a Home Equity LOC attached to our mortgage for a safety net, or future plans?
- Do we need any extra money for a down payment on an investment property, renovations, tuition, or any life events?
- Could we benefit from a lower payment and better cash flow by extending our amortization?
Saying yes to any of the above questions would mean a Refinance for you, which is anytime you increase the amount of your loan or extend the amortization period. Renewal time is the best time to make any of these changes, as there is no penalty to do so. A Refinance will, however, mean an appraisal is required, and there will be a legal cost as changes will need to be made on your title.
A Switch is when you are not changing the amount or amortization of your mortgage, but are simply moving your mortgage to a new lender to take advantage of a better rate or product feature. There is generally no cost to switch lenders, as the new lender picks up the cost of this move.
If you are switching from a collateral mortgage to a standard mortgage, a legal cost will be incurred in some cases, depending on the new chosen lender.