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21 Sep

Don’t Sign That Renewal!


Posted by: Jill Couture

Mortgage CheckupMany people who are coming up for renewal at the end of 2012 and the beginning of 2013 think that they are forced to renew with their current lender.  Why?  Because there is so much noise in the media about equity and maximum loans not exceeding 80% of the property value.  The truth is that although you may not have any increase in the value of your home, if you aren’t looking to take any new money out this doesn’t affect you.  You are still allowed (and the insurance company permits) to switch to a new lender and receive a competitive rate and term.  

Many people in 2007 & 2008 bought new condos in smaller urban areas located in communities to the east of the Great Vancouver Regional District at the height of the market.  What these folks don’t know is that Mortgage Brokers can help them switch into a more competitive rate and term, and usually with free legal and free appraisal.  That is a free service enabling you to save thousands of dollars and shave years off your mortgage!

The reason the banks don’t tell them this? Stats show that 80% of people will not bother to shop around for another option. They receive the renewal document from the bank and they simply sign on the dotted line.  I hope that you check around.  In 2007 & 2008 if you took a fixed rate mortgage, you were likely taking a fixed interest rate in the 5% range.  Nowadays you are looking at 3.09% for your standard 5 year term.  There are a ton of strategies available to help you pay off thousands of dollars and change nothing in terms of your monthly payment amount today.

Call me for a no obligation mortgage check-up.  You could be in a position to dramatically reduce your monthly payment or keep it the same and dramatically reduce the length of time it will take you to pay off your mortgage!  Either way you win!

Bottom line: Give me a shout so I can help you look after your best ‘interest’.  – pun intended.