Always remember you are not tied to your bank when it is time to renew your mortgage.
Research shows that more than 70% of Canadian mortgage holders just sign the mortgage renewal letter they receive from their lender or bank without looking at any other options!
Why should you ask for other options?
Lenders are counting on the fact that most homeowners are going to be too busy to shop around and inquire about getting a better rate. The big banks usually send their mortgage renewals out at a posted rate, which could be a higher rate and a mortgage product that might not be best suited to your interests. Do not let this happen to you when it is time to renew your mortgage!
Recognize that when you renew your mortgage, your mortgage principal has dropped and in most cases your home value has increased. This puts you in a position of strength when it comes to negotiations. Lenders will see you as a lower risk borrower, and they will be able to offer you better rates.
The key is to let the lenders compete for your business so that you get the best rate and terms available.
You might not get this opportunity if you just blindly sign the renewal document mailed to you by your current lender. Be in control and work with an experienced Mortgage Agent who can provide you with rates from the big banks as well as other lenders. It takes the hassle out of shopping around by yourself.
Always remember it does not cost you anything to work with a mortgage broker.