Renewing Your Mortgage in Alberta
When it comes to mortgages, banks make the majority of their money on their client’s renewals. Nearly 50% of clients simply sign their renewal statement and send it back into their lender. The problem with this is mortgage renewal rates in Alberta are almost always sent out at the banks posted rates, which can be as much as 2% higher than the fully discounted terms you see offered by RateDeals.ca; that can be tens of thousands of dollars over the term of the mortgage. This is the biggest mistake you can make when renewing your mortgage.
If you contact one of our mortgage specialists prior to your renewal (up to 120 days), we will make sure you do not become another posted rate statistic. We will lock in a rate for you and make sure you get the best deal on the day it comes due. The cost of housing is already high enough, don’t pay more than you need to on the mortgage as well.
How Much is the Convenience of Dealing With Your Bank Worth?
Often clients will say to us that it is a lot easier to simply leave the mortgage where it is, plus they generally like their bank. Well that is certainly noble, however how much additional would you payout every month for the privilege of being your banks client? Is it worth $50/month? $100? How about a couple hundred? Try our mortgage calculators to see for yourself what this ‘convenience’ is worth to you, we think you might be surprised how much you can save by doing your renewal through us.
Take a typical $300,000 mortgage, and lets say the difference is only .25%. Do you know this would save you over $3,400 in 5 years!! So this leads to the question once again, how what is it worth to you to keep your mortgage with your bank rather than renewing with one of our lenders?
Just a Quick Reminder About Your Mortgage Renewal Rates
When your bank sends you your renewal papers, you are not obligated to sign them. This is the time you want to take a good look at your current financial situation. Your mortgage was (hopefully) personalized for your situation when you took it out, but things change. Let us work with you to re-tailor your loan for your new situation with a great mortgage renewal rate.
We all know that banks play games, and this is no more evident than on home loan renewals. No one would accept a loan at posted rates unless they simply did not know that better rates were available and they had the option to negotiate. Most clients do not accept these posted rate offers, but lots do, and it’s enough of a reason for the banks to keep doing it.
Today we are seeing some of the lowest mortgage rates in our life times. If you are lucky enough to have your mortgage coming up for renewal, do not let this opportunity slip through your fingers. We can get you a great interest rate on a great home loan product. Remember there are no costs to move your mortgage at renewal, so there is no reason to pay more than you need to; we will save you money!
The process of Transferring Your Home Loan
Switching your loan to a new lender is easy; not as easy as leaving it where it is, but still pretty easy. If you have made the decision to move to a new lender, we will walk you through the process, making it as seamless as possible.
The new lender will need to make sure you still qualify for your mortgage, so some income documentation will be required.
If your property was CMHC insured, a new appraisal will likely not be necessary. If it was a conventional loan on the other hand, the lender may want one (at their expense).
You will need to sign docs mortgage docs once everything has been completed (either with the title company, the bank, or lawyer), again at no cost to you.
Transferring your mortgage does not cost the client any money, it’s all picked up by the new lender. If there is something they don’t cover, RateDeals.ca will pay for it. So there is no excuse for paying too much for your mortgage renewal; contact us today to discuss how much we can save you with our low mortgage renewal rates!
Why You Sometimes Need to Walk Away from Your Bank
One of the other tactics banks will try on their clients is to offer them a specific discount off of their posted rates to make it sound like they are giving a great deal. The problem is, it is not a great deal at all. What they are really trying to do is stop you from shopping around to see what else is out there. The mortgage renewal rates in the market are usually much better than what your bank wants to give up. Reluctantly, they will agree to match any deal you get. This is the problem.
Your bank, in this case, has likely tried twice already to get you to accept a higher rate (the posted rate renewal and the specific discounted rate). The last gasp in the negotiation is the rate match. When clients go back to their bank after shopping around to allow them to match the rate, this rewards the banks underhanded negotiations. Unfortunately it happens all too often and this is why the banks continue to treat their clients so poorly. We encourage you to be part of the solution, not contribute to the problem.
When you deal with RateDeals.ca, we offer you our best rate upfront, regardless of whether you are a previous client or not. Our goal is to save you money on your mortgage renewal in Edmonton, so there are no games and no difficult negotiations. We will pad your bottom dollar, not the banks as we have your best interests at heart.