Skip to content

Mortgage renewal opportunities missed.



Summer is a great time.  Vacations, time off, no school, sun and fun.  It’s also a time when most of our mortgages come up for renewal.   This year, things are a little different.  The loooong winter is really making us cherish the precious few months of summer.   We want to soak up as much of this warmer weather as possible.

This relaxed mindset appears to be making us easier prey for the BANKS mortgage renewal departments.  Mortgage renewals will typically follow the same process.   You get a renewal offer anywhere from 120 to 30 days prior to maturity.   The BANKS will offer you a rate that may be lower than their posted rate but, it’s much higher than the market rate, and some of us will go back and negotiate, some will call a mortgage broker to get unbiased and true market rates, and some of us will just sign that renewal and send it back in.

In the old days, most of us would just sign and return that renewal to our BANKS.   But that trend started to change over the last 10 years.  Consumers were shopping, calling mortgage brokers and seeking out better products.   Until this summer….

I’ve seen a disturbing trend recently where consumers are just signing that renewal and going back to their banks.  My research shows that we seem to be too busy or just don’t want to deal with the hassle of negotiating a better rate or finding a better product.   Your bankers will love for it!  But your bank account will not.

One of the most revealing studies ever done was conducted by the BANK OF CANADA.  And if that’s not credible enough for you, then I don’t know what is.   The study concluded that mortgage brokers get consumers a lower rate.   Higher income earners are less inclined to shop and will take the BANK’s renewal offers.  And it seems that this summer is making BANKS very happy.   Consumers are NOT shopping around for better mortgage products as we have been in recent years.   That study is available here.

Saving 0.25% on your mortgage will save you $3560.  And getting away from inflated prepayment penalties can save you $10,000 to $20,000.

Don’t be another statistic.  When your mortgage comes up for renewal, don’t sign it.  Contact an independent and unbiased professional.  Contact an experienced Mortgage Broker to shop the marketplace and get the BEST deal possible.

In case you didn’t know it,  most mortgages can be transferred to another Financial Institution at NO COST to you.   And it’s as easy as this:

1- Contact a mortgage broker and fill out an application to renew your needs.

2- Send in your mortgage renewal offer.

3- Review your offers, sign and let the broker take care of the rest.

Oh, and I forgot #4.  Enjoy the savings.

Your best interest is my only interest.   I reply to all questions and I welcome your comments.  Like this article?  Share with a friend.

Steve Garganis 416 224 0114

Steve Garganis View All

As an industry insider, Steve will share info that the BANKS don't want you to know. Steve has appeared on TV's Global Morning News, CBC's "Our Toronto" and The Real Life TV show. He's also been quoted in several newspapers such as the Globe and Mail, The Toronto Star, The Vancouver Sun, The Star Phoenix, etc.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: