Tagmortgage renewal

Posted September 20, 2024 Bank News

10 up and 3 down, unintended consequences!

LOTS OF MOVEMENT IN MORTGAGE RATES

Sounds like a football play. But I’m not talking about football even though the NFL season just started and my Buffalo Bills won their first two games. I’m referring to how many times the Bank of Canada’s (BoC) Governor, Tiff Macklem, has changed the Overnight rate since March 2022.

Did you know we saw 10 rate hikes totaling 4.75% in just 16 months from March 2022 to July 2023? That’s never happened before. And most of those rate hikes

Posted August 27, 2021 Mortgage News

Will I Be Offered a Mortgage Renewal?

If you’re nearing the end of your term, you might be wondering if your lender will offer you a mortgage renewal. Mortgage renewals are a great way to reassess your needs and potentially even get a better rate than the one you have now. But not getting a mortgage renewal means you have to pay your balance in full – so it’s no wonder so many feel anxious towards the end of their term. Inflammatory headlines about the dangers of mortgage renewals floating around the internet certainly don’t help either.

The good news is you can relax. In Canada, you’re guaranteed a renewal offer from your lender provided you pay your bills on time and don’t have any outstanding balances with Revenue Canada. As long as you’re borrowing from a reputable financial institution, you should be in the clear.

Where it gets tricky is when you borrow from a private lender. Private lenders aren’t federally regulated, so they have no obligation to offer you a renewal. However, for the vast majority of Canadian borrowers, a renewal offer is guaranteed.

A Bit of Background

There was a time when feeling antsy about your upcoming renewal was actually founded. In 2012, the Office of Superintendent of Financial Services (OSFI) almost made it mandatory for mortgage renewals to be re-underwritten. Thankfully, after some deliberation, they decided against it. The renewal process remains tipped in favour of borrowers.

The Bottom Line

The end of your mortgage term shouldn’t be fraught with uncertainty. If you’re borrowing from one of the banks, rest assured you’ll be offered a mortgage renewal. But don’t take whatever deal they throw at you. Use the opportunity to explore your options and make sure you’re getting the best mortgage product for you.

To do that, you should always consult a mortgage broker. Brokers don’t work for any one bank or credit union. They’re completely impartial experts acting purely in your best interest. Plus, they have access to wholesale pricing on mortgage products that the average person doesn’t. It’s that simple. If you’re not sure where to start, feel free to call my office any time. Just make sure you don’t miss the opportunity of a mortgage renewal to get the best deal possible.

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@canadamortgagenews.ca

Posted November 21, 2019 Mortgage News

A return to common-sense lending!

I’d like to think the Total Net Worth Program reintroduced by a lender recently is an indication of what’s to come!

I’m excited about this program. It allows borrowers with good net worth to gain access to money. This is old-school lending – nothing new – but it’s a comeback worth celebrating!

Continue reading “A return to common-sense lending!”

Posted March 28, 2019 Mortgage News

Is Common-Sense Lending Making a Comeback?!

I’d like to think the Total Net Worth Program reintroduced by a lender recently is an indication of what’s to come!

I’m excited about this program. It allows borrowers with good net worth to gain access to money. This is old-school lending – nothing new – but it’s a comeback worth celebrating!

Continue reading “Is Common-Sense Lending Making a Comeback?!”

Posted July 11, 2014 Money saving tips

Mortgage renewal opportunities missed.

DON’T SIGN THAT RENEWAL AGREEMENT BEFORE SPEAKING WITH YOUR BROKER!

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…. Continue reading “Mortgage renewal opportunities missed.”