Posts Tagged ‘Mortgage Renewal’
Renewal VS Refinance – Know the difference
What is the difference between a renewal and a refinance? A renewal occurs at the end of your mortgage term. Your lender will send you a renewal notice and you will have the option to sign it for a new term.....or if you are smart you will speak with your broker to see if there is a better offer available. Most likely there will be a more attractive offer available and you will "switch" your mortgage to a new lender. A mortgage switch is when you move your mortgage to a new lender with all of the terms intact.....the only thing that changes is the rate. The amortization and mortgage amount remain the same. A switch is free to the client. The new lender covers any legal or appraisal costs that arise. The only possible expense to the client would be the small discharge fee from the current lender....which may also be covered in part or whole by the new lender. When is a mortgage renewal a mortgage refinance? In short if you change any of the ...
Mortgage Rate and Housing Outlook
I recently had the opportunity to listen to an economist from Genworth Canada speak on his predictions about where mortgage rates and housing starts would be going over the next couple of years Really, there were not many surprises. By this point we all know mortgage rates only have one place to go and that is up. When we will start to see this increase is up for debate, but most "experts" agree it will be before the end of this year. Originally variable rates were predicted to start moving by July, but several bank economists have recently come out saying it will now be early fall. That is great news for those of us with variable rates. So how high will mortgage rates climb? It is hard to see the future without a crystal ball, but Genworth feels by the end of 2012 we will see prime rate around 6% and 5 year fixed rates around 7%. Keep in mind the 5 year fixed is the posted rate and most lenders discount the posted rate by ...
Mortgage Renewal – Don’t Accept Bank’s First Offer
I have been a loyal mortgage client with my bank for the past 5 years....they would only offer me there best rate upon renewal right? WRONG....Many Canadians believe their loyalty will translate in to preferential rates when it comes time to renew, but nothing could be further from the truth. Banks know that 85% of Canadians will sign their mortgage renewal notice without even looking around to make sure they have the best rate. Why would the bank offer their lowest rate when they can offer an inflated rate without any push back? in fact many times a stranger walking in to a bank branch looking for a mortgage will get a better rate than the long term client looking to renew. This does not have to be the case. Get in touch with your mortgage broker 3-4 months before your mortgage renews so he/she can start shopping around for the best rate. At the very least you can get a rate hold for 4 months to protect you in the case of rate increases before your actual renewal. Also take a moment to think about ...
