Mortgage Renewal Options
- Thread starter RCC
- Start date
- Joined
- Oct 16, 2007
- Messages
- 758
That's really high on both accounts. Most clients would be getting 3.89% for a 5 year fixed and around 2.25% for a 5 year VRM.
I'd be interested what bank offered you that. Your best bet would be to contact a broker and shop the market for better alternatives. You still have some time, but might plan ahead and just ask your bank to roll into a 6 month open to give you time to compare options.
Give me a call if you need some more information.
I'd be interested what bank offered you that. Your best bet would be to contact a broker and shop the market for better alternatives. You still have some time, but might plan ahead and just ask your bank to roll into a 6 month open to give you time to compare options.
Give me a call if you need some more information.
- Joined
- Jun 5, 2009
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- 966
I have been told in more than one occasion that you never "never" accept the renewal notice. Contact a mortgage broker to get some quotes.
- Joined
- Aug 31, 2007
- Messages
- 323
Looks like they have offered you Posted Rates, there are many better offers out there. If you are planning on purchasing or refinancing rental properties now is a good time to make sure this mortgage has the right Terms (amortization, re-advancing, ...) and is with the correct Lender that will allow you to meet your future purchase and refinance objectives. If you plan on exploring your options, make sure you notify the existing Lender that you want to move into an open product on Jan 31st as you are still exploring your option. Some Lenders are known to lock you with terrible Terms if they don't hear from you before the renewal date.
- Joined
- Oct 22, 2007
- Messages
- 2,803
If you are happy with your current institution, then I would suggest researching the rate and approaching your current mortgage officer. They should be willing to match (or at least come close to) the best rates, saving you the hassle of applying elsewhere.
One website to check out would be Canoe.ca. There may be better sites, but Canoe is very user friendly in how it organizes with one click (alphabetically, best rate by term, etc.).
Personally, I use PC Financial as a benchmark because they are a national institution and their posted rates are consistently among the best.
"And you can take that to the bank." (Couldn't resist that one.)
One website to check out would be Canoe.ca. There may be better sites, but Canoe is very user friendly in how it organizes with one click (alphabetically, best rate by term, etc.).
Personally, I use PC Financial as a benchmark because they are a national institution and their posted rates are consistently among the best.
"And you can take that to the bank." (Couldn't resist that one.)
- Joined
- Jan 28, 2010
- Messages
- 51
Just to share an experience I had, long before I joined REIN, I was in a similar situation. My principal residence mortgage was due for renewal, and my bank offered what appeared to be the posted rate (not a very good rate at the time). I knew I had at least a month to think about it before I accepted, so I just waited and didn't reply to the bank's offer, mainly out of procrastination.
A couple weeks later, the bank called me back, notifying me that they have some "special deal rates" to offer me. I called them back, and they immediately offered what was a far better rate, which I accepted. That must have saved me 0.3% or 0.5% , just by not responding to their first renewal offer, making the bank think that I was shopping around for a better rate.
I learned the exact same lesson that A.Sanchez is sharing above. Luckily, it saved me some $$ over my next 5-year mortgage term.
It's definitely worth your while to find a better rate. I would suggest that you work with a mortgage broker. Why do the shopping around yourself if a professional broker can do it for you? Mortgage brokers do save you tons of time. At the very least, you should find out what is the best rate you can get, and then ask for that rate at the bank. If you can find that rate, the bank will know that you're willing to leave them for that better rate. Your bank is fully aware of the competing rates out there, and should be willing to offer it.
Good luck.
George
A couple weeks later, the bank called me back, notifying me that they have some "special deal rates" to offer me. I called them back, and they immediately offered what was a far better rate, which I accepted. That must have saved me 0.3% or 0.5% , just by not responding to their first renewal offer, making the bank think that I was shopping around for a better rate.
I learned the exact same lesson that A.Sanchez is sharing above. Luckily, it saved me some $$ over my next 5-year mortgage term.
It's definitely worth your while to find a better rate. I would suggest that you work with a mortgage broker. Why do the shopping around yourself if a professional broker can do it for you? Mortgage brokers do save you tons of time. At the very least, you should find out what is the best rate you can get, and then ask for that rate at the bank. If you can find that rate, the bank will know that you're willing to leave them for that better rate. Your bank is fully aware of the competing rates out there, and should be willing to offer it.
Good luck.
George
Thanks for all your great ideas. I ran out of time to contact mortgage broker or other banks so just went to my current lender following Sherilyn's suggestion of PC rates. Sherilyn, a big thank you.
They would not match PC rate but reduced their proposal to within 20 points higher than PC rate.after about 1/2 hour of negotiation.
I took the renewal for convenience and pretty good rate. But for next time, I will give myself more time and not wait for the renewal notice. Reasoning that it will take up my time to switch and even without
prepayment penalty - there are fees for administration, discharge,
regulatory fees etc.
Anyone know what is the typical amount of these fees for canceling mortgage and switching lenders ?
They would not match PC rate but reduced their proposal to within 20 points higher than PC rate.after about 1/2 hour of negotiation.
I took the renewal for convenience and pretty good rate. But for next time, I will give myself more time and not wait for the renewal notice. Reasoning that it will take up my time to switch and even without
prepayment penalty - there are fees for administration, discharge,
regulatory fees etc.
Anyone know what is the typical amount of these fees for canceling mortgage and switching lenders ?
- Joined
- Oct 16, 2007
- Messages
- 758
If you were running out of time, most lenders can offer an open term either 6 months or 1 years. It's a significantly higher rate, but can give you the few days you need.
If you just transfer your mortgage at the end of a term to a new lender and don't take new money, in most cases the new lender will absorb the fees. It's when you make a material change that fees kick in. You are looking at about $300 for an appraisal (if needed) and around $800 to $1000 for legal, but depends on your marketplace.
Many lenders are now offering 'virtual' legal packages for refinances with cost around $500 or so. And there is one lender that has just introduced the program through the broker channel, so they are covering the cost up to $500 until the end of February.
If you just transfer your mortgage at the end of a term to a new lender and don't take new money, in most cases the new lender will absorb the fees. It's when you make a material change that fees kick in. You are looking at about $300 for an appraisal (if needed) and around $800 to $1000 for legal, but depends on your marketplace.
Many lenders are now offering 'virtual' legal packages for refinances with cost around $500 or so. And there is one lender that has just introduced the program through the broker channel, so they are covering the cost up to $500 until the end of February.