Mortgages don’t last forever but while you’re invested in one, you’ll be renewing it every three to five years. When the time comes, your bank will send you a renewal in the mail.
According to Bryan Guertin of Mortgage Intelligence, “Surprisingly, 60 per cent of people just sign it (the renewal form) and send it back.” That’s a costly mistake, says the seasoned mortgage broker.
“The majority of the time the banks are offering their posted rates, which are their higher rates,” says Guertin.
With as little effort as calling the number on the renewal form and speaking with a bank representative, you can get up to half a percentage point off the offered rate. The Mortgage Intelligence representative advises that if you “hassle” them a bit, the representative is likely to knock another quarter of a percentage off. They are in fact authorized to give that level of discount, he adds.
A better way to secure a lower renewal rate however is to enlist the skills of a mortgage broker. Guertin’s job is to shop around on a client’s behalf. There is no charge for the service – the banks pay for it. There are no additional fees from the bank for transferring a mortgage – the bank picks of that expense as well although Guertin says the costs is minimal since you’re dealing with an existing mortgage.
“We find for you the best rate,” he contends, adding that mortgage renewals represent a large part of his company’s business.
In the case of a “mortgage transfer” where a mortgage is moved from one bank to another offering a better rate, the new lender might want an appraisal. The bank also picks up that cost.
It’s essential that homeowners with a mortgage shop for a better rate come renewal time, stresses Guertin. Since the average person isn’t always up-to-date with interest rates, it pays to have a mortgage broker do the homework and secure the best rate.
To enlist the help of Bryan Guertin, go to the Mortgage Intelligence website at
www.bestdealmorgages.com.
