Mortgage Renewal

Mortgage Renewal time?

Thousands of mortgages renew on a daily basis and banks regularly send out mortgage renewal notices in the mail. We are in touch with our clients throughout their mortgage term but also sooner along in the renewal process. I felt compelled to share this occurrence to potentially save you some of your hard earned money.

We received a note from one of our clients a few weeks ago, and I’d like to share it with you, not to impress you, but to impress upon you, the importance of the knowledge and advice of a professional

It is refreshing to see some anecdotal evidence from one of our existing clients, rather than hearing it from us all of the time. I will be interjecting in and providing some further perspective with calculations etc.

The letter we received from our client began with:

Aleem, my mortgage was up for renewal in October as you know. Even though your office was in touch with me a few months prior and we had made arrangements to lock into another 5 year term at a fantastic interest rate of 2.79%, curiosity got the better of me, and when we got our letter from our bank I just had to give them a call.


mortgage renewal

It is nothing personal, we have trusted you with all things mortgage related and you have never steered us wrong. But I was interested in what my current lender, whom we had been with for the last 5 years, and never missed a payment or anything, I was interested in seeing what they would provide us. I waited until about 4 weeks before our renewal date until we got our actual renewal forms.

Please sign here as indicated on your mortgage renewal forms to accept the term and rate that you most desire. 5 year rate of 4.79%,

I could just initial and send it back, no hassles, for a 5 year rate 2% more than what you were able to help us obtain from another lender with suitable terms and options as our current one.

I kept reading and further on in the letter there was a section called “Get the best Rate”on your mortgage renewal. It offered to extend their interest rate guarantee hold until my mortgage renewed if I signed this and sent it back to them. If rates went down then I would get the lower rate.


Now let’s say that the mortgage this client was carrying was $500,000, this extra 2% would cost him upwards of $47,000 more over the next 5 years just by taking the convenience and signing and sending the forms back.


The client continues…..I thought this could not be true, and I just had to call them. It was interesting when I called them, within 30 seconds of our conversation the bank representative on the other end of the phone said that he could actually do better than what was on the renewal forms, he said he could give us 2.99% for 5 years. I asked why on the forms the rate says 4.79%. The representative of my bank told me that this was their standard rate and a better rate was available (the 2.99%)


A simple phone call here, assuming the same $500,000 mortgage, would have just saved you $42,800 over 5 years… about 30 seconds…..


The client continues that he asked the representative how often people just sign their mortgage renewal forms and send them back. The rep did not have an exact answer but he did say there were quite a few.

Let’s just say that every year about 5,000 people just sign and send their renewals back…..even though there are far more people that do this, approximately 70% of the population (or more depending on who you talk to) simply sign and send the forms back……but let’s say 5,000 at $500,000 mortgages. That would mean a cool $42.8 million extra dollars towards your banks bottom line

Please do not automatically sign and send your mortgage renewal forms back. Please at least call to negotiate, or better yet, contact your mortgage broker (or us) to negotiate the best possible rate for you given your circumstances or terms.

If you feel a particular loyalty towards your bank, spend a few minutes and speak to someone. As always, if you have any questions or concerns, feel free to give us a call at 778 233 2377 viagra kvinner.


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