Mortgage Renewal Mistake to Avoid!

Is it time to renew your mortgage? A significant number of Canadians could be missing out on opportunities to reduce their financial burdens by not engaging in negotiations during their mortgage renewal process. Recent insights from Mortgage Professionals Canada highlight a troubling trend: an increasing portion of homeowners are choosing to accept their lender’s initial renewal offer without seeking better terms. This trend has risen to 41% of borrowers, compared to 37% two years ago.

The Rising Trend of Accepting Initial Offers

With interest rates on the rise, the potential savings from successful negotiations can be substantial. Experts suggest that a combination of intimidation by financial negotiations and a lack of awareness about the process discourages many from pursuing better rates. This reluctance often stems from an uncertainty about personal financial stability and a misconception that better terms are unachievable without exceptional credit standings or external assistance.

Overcoming the Intimidation and Lack of Awareness

To combat this, my team and I recommend that homeowners take proactive steps before their renewal date approaches. This includes educating yourself about the current mortgage environment, understanding how interest rates compare across the market, and exploring different lenders’ offers.

Taking Proactive Steps for a Better Financial Future

Overall, the call to action for Canadian homeowners is clear: Don’t leave money on the table. With proper preparation, knowledge, and the willingness to engage in negotiations, renewing a mortgage can become an opportunity to secure a better financial future.

If your mortgage is up for renewal and are interested to see what options are available for you, reach out to my office at 519-250-4848 or email me at [email protected]. Either myself or one of my mortgage agents will be happy to help!

Have a great day. Rasha Ingratta.