Saskatoon Mortgage Broker shares article on early mortgage renewal

Early mortgage renewal: A gift horse to examine carefully

Robert Mclister, The Globe and Mail, July 07, 2015

Lenders have a book of tricks to keep you tied to them for as long as possible. One of their strategies is the “early mortgage renewal.”

An early renewal offer can seem like a gift horse, and often it is. But it’s a gift horse that you’ll want to look squarely in the mouth. The reason: Early mortgage renewals are meant to keep you from comparison shopping.

If a lender can entice you before you talk to their competition, its chances of retaining you as a customer rise dramatically. That’s why banks are increasingly asking people to renew more than 120 days before their maturity (renewal) date. This prevents people from securing long-term rate guarantees that are lower than the incumbent lender’s renewal offer.

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