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.
To read full article please click here.
Click here and LIKE us on Facebook to be entered in our monthly prize drawing
Refer a Friend and be Entered in our monthly prize Drawing