Mortgage Renewal

A strategy if your lender does NOT offer the best Renewal Rates

Banks and lenders are in the business of making money. According to the Canada Mortgage and Housing Corporation (CMHC), 60% of Canadians sign renewal letters and mail them back to the lender. If banks can get 60% of their customers to renew at a 7% rate instead of a 6% rate, they will definitely do it.

To get a lower interest rate, follow this proven strategy:

First, contact mortgage brokers. Ask them for the lowest rate you can get. Mortgage brokers always have access to lower rates than you're aware of - so once you get the quote, call your original lender. Second, when you speak to your original lender, say that unless he or she matches the broker's quote, you'll seek funding elsewhere. In many cases, your lender will comply and match or beat the broker's rate.

And finally, if your lender does not match or beat the quoted rate, you should indeed access the money from another source - because the accumulated savings over the years of the mortgage will add up to thousands of dollars.

Get rate quotes from mortgage brokers in your area. We can also arrange renewal if and when you're ready.

You Can Save $50 - $200 on Monthly Mortgage Payments and
$15, 000 - $40,000 Over the Years.
For Example:

Example above is for a $150,000 mortgage on a 20-year (240-month) term.

This realistic example proves that you can save $155 per month by renewing at 1.9% lower than the bank rate. It makes sense to do it. The process only requires a few documents and very little of your time.

Renewal Is Free

Renewal is free. There are NO penalties for mortgage renewal.

Renewal sometimes requires a new home appraisal that can cost $300 - $600. If you never missed a mortgage payment and have good credit, the lender will assume this cost. There's also a "discharge fee" (a document that confirms you have a new lender) of $100 - $200. You don't have to pay this either.

When you might pay for mortgage renewal:

• If you have credit problems, you MAY have to pay mortgage renewal costs - but not always. Contact us to be sure.
• If you want a larger mortgage, then be prepared to pay about $1,000 in fees (mostly legal).

Mortgage Renewal Takes 3-5 Day

Mortgage Renewal normally takes 3 - 5 business days if you have all your papers ready - such as verification of income, insurance statements, appraisal report, property title, mortgage charge and annual mortgage statement. View all the documents required for Mortgage Renewal.

Credit Score and Mortgage Renewal

Basically, a higher credit score will get you a lower renewal rate, while a lower credit score will get you a higher renewal rate. Learn in detail about mortgage credit score and factors that affect it.

Documents You Need to Renew a Mortgage

• Credit score application (Credit Authorization Form), to determine your credit score.
• Verification of income from your employer.
• Copy of the latest insurance statement for the property.
• Document confirming that there is a mortgage registered on the property (Mortgage Charge).
• Copy that confirms your ownership of the property (Property Title).
• Copy of the most recent mortgage statement which shows: name of the lender, mortgage reference number, approximate mortgage balance, current monthly payment and mortgage renewal date. Annual Statement is perfect for this.
• Copy of a new appraisal report.

Are you Self-Employed?

If you're self-employed, instead of income verification, lenders require Notices of Assessment (i.e. Income Tax Returns) for the past 3 years in order to determine accurately your average yearly income.

Mortgage interest rates are subject to change without notice. We always attempt to maintain accuracy on our website, however, mortgage information on this site should be used only as a guideline. Please consult one of our mortgage professionals consult BEFORE taking any action.