Three Bank Mortgage Renewal Traps to Avoid

It's Mortgage Season! 

Three (3) Renewal Traps to Avoid; 

How do you get the most bang for your mortgage buck? By understanding you are the one in control of your mortgage. All banks want your mortgage payments. Here are three ways that banks will try to trap you into staying with them instead of finding the most affordable option for you.

Maybe I can convince you with this free pen as well? 

1. 'Encouraging' you to Renew Early

You do not need to renew early. Banks will call 6 months before the renewal date and say "if you renew early, we will give you best rate". The best strategy is to get the best rate from all of their competitors over the next 6 months.

For example, we can lock in a rate at 3.19% today. If rates go up before your renewal date, we will use the 3.19%. If rates decrease, we then use the lower rate.

Try to determine if your bank rep is smiling or growling. That helps.

2. Renewal Mail Outs 

Don't ever sign this! Banks will send out renewal letters, citing the 'convenience' of you not having to come into the bank yourself. Sometimes they will give you rates .5% higher then what they are currently offering new clients counting on you not to know the big picture. A .5% difference over 5 years is 2.5% profit for a bank. On a $400,000 mortgage, that's $10,000 you lost and the bank gained because you didn't liked the convenience of not shopping around.

This says a lot right here when it comes to mortgage renewals. 

3. Last Second Renewal 

They will contact you a week before your renewal date. If you are unprepared, you may agree to what they offer you. Never agree and call a mortgage broker! AKA - Me! Most mortgages can be turned around in 2-3 days.

Yes, I am Daffy Duck in this situation...

HOW TO AVOID THE ABOVE THREE SITUATIONS:

Email me here your renewal date. I will get in touch with you 6 months before your renewal and build a strategy with you. Worst case scenario, if I can't find anything better, I will negotiate directly with your current bank for you.

Don't pay money that you don't need to. Stay informed, contact a mortgage broker today.

What in tarnation?! Where's my cameo?