Saturday, December 16, 2017

A Warning About Mortgage Renewal & Refinancing
Hi, everyone. How are you? It’s Leah Coss with The Mortgage Centre, and I wanted to talk about renewal and refinancing. You may not know this, but when it comes to, actually, renewal or refinancing, pardon me for the language, but you’re going to get screwed, really, 100 percent of the time on whatever rate you’re offered by the current lender that you’re getting your mortgage from. It is absolutely vital, it is crucial, that you do not leave your mortgage renewal to the last minute, because you need time to be able to properly get banks and lenders to compete for your rate.
In my opinion, it’s actually more crucial to have a mortgage broker working for you upon renewal than it is when you first buy the home. Reason being is banks are still going to try to be somewhat competitive if you’re a brand new homeowner. They’re going to go, “Oh, they’re buying a new home. We want to keep their business for the length of the time that they live in that home. We’d better be a little competitive.”
But there’s still always going to be that negotiation war of going, “Well, how low do you think we have to go before they agree to it?” That’s truly the mentality of your banks. That’s why, by going to a mortgage broker, they’re dealing not only with the banks, who can offer very good rates at times, but they’re dealing with all of the non banks as well. And check out other posts on the difference between banks and non banks, because it’s very important that you understand what these non banks are. They’re not bad. In fact, they’re great, because they keep the competition level high, which keeps rates lower for you.
But being a mortgage broker, we have high volumes. Therefore we get much more discounted rates than you do. Plus, we have all of the lenders competing for your rate, to make sure that you really do get the lowest rate based on the products that you’re going to need, based on your situation.
But, upon renewal, how many of you out there have reached renewal and gone, “Oh, jeez, I’ve got to renew in like two weeks”? Or the banks call you and they go, “Hey, we can take care of your renewal for you. How’s about you just sign these two pieces of paper, and you’re done. You never have to think about it again.” And so you go ahead and do that. How many of you actually think that the banks, knowing that this is the mentality out there, are going to give you a good rate?
Now, they will always tell you that they’re going to give you a discounted rate, and that’s because they are. It’s because nobody offers posted rates. Posted rates are just these benchmarks to measure things by. But the discounted rate that they offer you is by far not their best rate. And they will never offer you their best rate unless they feel like they’re in a competitive position, where someone else is actually vying for your mortgage.
By using a mortgage broker, upon renewal, first off, if you have a mortgage broker already, then they should be a good mortgage broker, which means they’re contacting you six months out from your time of renewal to make sure that you’re getting the process started. But bare minimum, you need about three months to be able to properly do a renewal. And if it means we’re going to be switching you to another lender, great. If not, and we’re renewing, well, then at least we’ve got to get those rates bidded down with your current lender. So yeah, just wanted to let you know that.
In my opinion, there’s really only two lenders out there, non banks, who I would trust to have renew your mortgage, because I would trust that they are, in fact, going to give you their best rate. Everyone else, sorry guys, you can write me letters if you want later, but you never, ever offer the best rates upon renewal. So, if you think that you do, I’d love to see proof of that, but you just don’t. So for you, the client, you really need to understand that renewal, it’s 1,000 times more important to find a broker who can work for you to make sure that you get the best rate for the next five years of your mortgage.
So if you have any questions, or if you are coming up for renewal, please, please, please, please, please give me a call. I would love to help you out. I have no fee. You don’t owe me anything. I do this all in your best interest. The banks pay me, so you don’t have to worry about it costing you a thing. And I do all the footwork for you. I even work weekends, when the banks are closed, to make it easier for you if you work nine to five.
So, Leah Coss with The Mortgage Centre. Good luck on your renewal. Don’t forget to give me a call, and I will talk to you very soon.


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