[CANADA] Mortgage Renewal at a Big Bank - Things I learned!
I've just renewed a mortgage for the first time and I thought I'd share my experience.
Note that this is going to be Canada-specific, as the vast majority of us have to do this every 5 years (or less).
1. 6 months before renewal your lender might send you a renewal opportunity. While it will likely be under the current posted rates, it will not be the best deal you can get. At this point you probably can't argue for a better rate. It's best to wait until ...
2. 120 days before renewal, you can go rate shopping. Most lenders will hold a rate for this long. I used a broker and compiled a list of lenders and rates they are offering. I also discovered that ...
3. If your balance is low, and/or you want an amortization that is less than 5 years, using a broker may not be possible. Lenders want a bigger commitment if you are going through a broker. I assume this is because there is less of a "cut" to split with a 3rd party.
4. At this point, renewing with your provider (in my case a big bank) can be incredibly easy. Simply walk in with your info (from 2. above) and ask for the lowest rate with your desired amortization and payment schedule. A couple of signatures and you are done. No extra forms, etc.
5. The renewal can be activated immediately. That means you start paying your negotiated rate right away. In our case, our rate went from 3.69% to 2.34% ~100 days before our official renewal date and we saved some $$$.
Note - If anyone is in Ottawa and is looking for a kickass Broker, I have a name for you. He was happy to do a lot of leg work for me even though he didn't end up with a commission. No affiliation. I just like the guy. He's one of the good ones.
