Mortgage Renewals
When a term is coming to a close, most banks will send a mortgage renewal notice in the mail usually one to two months prior to the term expiration. At this time the banks tend to take advantage of our busy schedules to assume that you will sign on with them for another term. The worst part is that the banks only tend to offer you their posted rate with very little or no discount. Almost 60 percent of the public sign this renewal without researching what the competition has to offer. We, at CanEquity, are here to offer you the expertise and resources so you can take advantage of the competitive mortgage market.
Centum Home Lenders Ltd. deals with over 30 lending institutions to find you the best possible mortgage to fit your needs. We don't work with one bank or one institution; we are an independent company with a sole purpose of finding you the best mortgage rate in Canada.
Traditional "big bank" policy is at best to discount the posted rate by 0.10 to 0.75 percent. Of course in order to get a fully discounted rate the bank likes to see your personal investment portfolio. Why should your net worth have anything to do with the discount you receive? At Centum Home Lenders Ltd., your discount is based on normal qualifying procedures such as credit worthiness and job stability, not how much money you have.
Here is a real-life example:
Let’s assume two clients share the same maturity date of July 1, 2004. Client “A” calls True North Mortgage four months prior to the date and we go to the market and get the client the lowest rate possible, guaranteed until July 1, 2004. It didn’t cost Client “A” one red cent. If rates decrease, Client "A" will benefit and receive the lowest rate in the marketplace, right up to July 1, 2004. If rates increase, Client "A" is protected because they locked in. The new bank pays all the costs associated with mortgage transfers. Client "A" received a rate of 4.40% on March 1, 2004 (actual).
Client “B” waits until their current lender notifies them in the mail. (Typically about 15-20 days prior to the maturity date.) The Banks are very clever and know how to ensure their clients resign at their rate:
- They know 15 days is not enough time to properly research the market and comparison shop.
- They know that most clients are unaware that companies like True North Mortgage exist, because 90% of their clients do not transfer their mortgages.
- They know that 75% of clients do not negotiate off the posted rates sent in the renewal agreement. (That means that 75% of their clients are paying rates as high as 1.5% above the wholesale market!)
When client “B” receives the renewal notice on June 15, 2004, the best 5 year rate is 5.25%, or .85% higher than the rate Centum Home Lenders Ltd. secured for Client “A” (actual fact). This rate would only be available if they negotiated very well.
Over a five-year term with a typical mortgage amount of $200,000, a difference of .85% in the 5 year rate will save Client “A” $8,260...a significant savings!
Please keep in mind that there are absolutely no costs to transfer your mortgage from one Banking Institution to another. No appraisal, no legal work and no penalties.
With this knowledge you can protect yourself and save money
Discounting with Centum Home Lenders Ltd. starts at 1.00 to 1.75 percent!
The big difference when using Centum Home Lenders Ltd. is service! We don't stop at the application. We assist you in gathering all information that the lender requires. We have the solutions to all of your mortgage related concerns. Unlike the big banks, we work harder to earn your business and to keep you coming back!