Imagine this scenario
A person receives a renewal notice from their bank and can’t decide what to do. “Do I stay or do I go?” they say to themselves. They make one phone call to a mortgage broker, but still don’t know what to do. The bank is offering 4.39% on a fixed one year and doesn’t require anything but their signature. The mortgage broker can get 2.39% for a 1 year fixed rate, but requires them to send in paperwork and they think “Ugh, what a hassle. I think I will just sign the existing lenders papers and take the 4.39%.”
80% of Canadians will not shop around. This person will pay $3,146 more for the year than a person who takes the time and works with their mortgage broker! This is just a one year example. Imagine this over 5 years… You might as well burn money!
The sad part about this is that it actually happened. Do not simply sign the renewal form! Shop around! Call me if your mortgage is coming up for renewal, I can help!