The Mortgage Renewal Process
What are your options when the bank makes you an offer?
When your mortgage term is coming to a close, most banks will send a Mortgage Renewal notice in the mail approximately one to two months prior to the end of the term. On this notice, banks will always offer you a higher rate and assume that you will sign on with them for another term. They typically only offer you their posted rate with very little or no discount.
CMHC stats show that over 60% of all Canadians accept the first rate their bank offers. They will stay with their existing mortgage lender because they believe it is too time consuming to shop around for a better rate. Or, they may think the offer from their existing bank is the best deal available. This is not true!
Don’t rush to sign the first offer from your bank, talk to a mortgage broker to take advantage of the best rates on the market whether they can negotiate your current lender lower or transfer you to a new lender for the best rate and product at no cost to you!