When mortgage maturity approaches, and it's time to renew your mortgage, you will receive a Renewal Agreement in the mail.
The Renewal Agreement is often a very thick document that displays current interest rate offers together with mortgage terms.
Most borrowers do not understand all of the terms and more than 50% of borrowers do not know how to interpret the offers being given in terms of dollars and cents.
One example of this is an experience I recently had with a client who had her original mortgage with CIBC. Her CIBC mortgage was up for renewal and she locked into another five years. She mis-read the renewal agreement completely. What she failed to realize was that her low five-year rate was only an introductory rate for the first six months followed by a much higher interest rate for the rest of the five year term.
This meant that after the first six months she would end up paying almost one percent more than what other prime lenders were offering.
This was a very costly mistake and one that could have been avoided if she understood her mortgage renewal terms.
As always, mortgage renewal and mortgage maturity is an opportunity to seek a better interest rate and negotiate better terms. It's a time to save money.
Please contact me today if you would like to discuss your mortgage renewal.
By: Sarah Colucci
Senior Mortgage Agent, Lic. M14000929