Dave Butler
Great Brokers Company
License M2305768 (Level 2)
Office:123 Main Street, City, Province, Postal Code
Areas Served: Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, Quebec, Saskatchewan, Northwest Territories, Nunavut, Yukon
BIO: Fiducias incredibiliter verecunde corrumperet Caesar.Pretosius appara.
Website: greatbroker.com
Mortgages Renewals
Take Control of Your Mortgage Renewal and Unlock Savings
Almost two-thirds of Canadian mortgage holders accept their bank’s initial renewal offer without exploring other options. This single decision often costs homeowners thousands of dollars over the life of their mortgage. Even a slight reduction in your interest rate—say 0.05%—can result in significant savings over the term of your loan.
In fact, one study revealed that Canadians who shop around during renewal can save anywhere from $500 to $2,500 per year on average, depending on their loan amount and term. Yet many leave money on the table by sticking with their bank’s first offer.
As the renowned economist Milton Friedman said, “The most important single central fact about a free market is that no exchange takes place unless both parties benefit.” By leveraging the competitive mortgage market, you can ensure your renewal benefits you—not just your lender.
Why Your Mortgage Renewal Matters
A mortgage renewal is more than just a continuation of your current mortgage—it’s a unique opportunity to secure better terms. Renewals allow you to:
-
- Reassess your mortgage strategy without penalties.
- Negotiate a lower interest rate or more favourable terms.
- Shop the market to maximize your savings.
Unlike refinancing, a mortgage renewal doesn’t require fees or penalties to adjust your mortgage, making it the perfect time to optimize your financial position.
Game-Changing Rule Changes
No Stress Test for Straight Renewals
Recent changes to Canada’s mortgage rules have made straight renewal switches even more advantageous
No Stress Test for Straight Switches
Switching your mortgage to another lender at renewal now bypasses the stress test, provided the loan amount, amortization, and terms remain the same.
What This Means for You
If you qualify for renewal with your current lender, you can shop around with other lenders without needing to meet the stringent stress test requirements, making it easier to secure competitive offers.
Key Note: This rule applies only to straight renewals or lender switches with identical terms. If you refinance, change your loan amount, or adjust your amortization, the stress test will still apply.
Why a Mortgage Broker Is Essential for Your Renewal
Renewing your mortgage without exploring the market is like leaving money on the table. Here’s how Better Mortgages ensures you get the best possible deal
Access to a Wide Lender Network
We have relationships with Canada’s top lenders, from major banks and credit unions to alternative lenders. This allows us to present you with multiple competitive options tailored to your financial needs.
Leverage the Power of Competition
Banks often offer their best rates only when faced with competition. We use offers from multiple lenders to negotiate with your current lender, ensuring they match or beat the market’s most competitive terms.
Expert Guidance
Navigating the renewal process can be overwhelming, especially with changing rules and products. Our team analyzes your financial goals and market conditions to recommend the best strategy for maximizing savings.
Save Time and Effort
We handle all the legwork, from gathering offers to submitting paperwork, so you can focus on what matters most in your life.
No Cost to You
Our services are typically free to borrowers. Lenders compensate us for securing your business, meaning you receive expert advice without additional costs.
Why Accepting Your Bank’s First Offer Is a Mistake
Your lender’s initial renewal offer is often not their best. Banks rely on the assumption that most borrowers won’t shop around, which allows them to retain higher margins. By not leveraging the competitive market, you could miss out on significant savings.
Think of a mortgage renewal like bidding on a valuable asset—you wouldn’t accept the first offer without knowing what else is out there. A mortgage broker ensures every option is explored, and the most favorable terms are secured for you.
Take Charge of Your Mortgage Renewal with Better Mortgages
At Better Mortgages, we combine decades of experience with deep market knowledge to ensure you don’t leave money on the table. Whether it’s negotiating a lower rate, exploring alternative lenders, or taking advantage of the latest rule changes, we’re here to help you every step of the way.
Choose a Better Mortgages representative to work with or contact us today to schedule a consultation.
Let’s turn your mortgage renewal into an opportunity to save and succeed!