Why contact a mortgage broker when your mortgage matures?

Your mortgage is maturing and the financial institution sends out the current mortgage rates. Your first reaction is ouch. These new rates and payments are much higher than what I am used to. What can you do? Most of Sean and Roberts clients call us. Why you may ask? Well, we will give you a full mortgage check up at no cost and no obligation.

Here are some examples of our process when your mortgage matures:

1. We ask you to inform us regarding your current rate option.

Sometimes the rate offered is excellent and you can carry on with your existing lender, and we are complete. More often, the lender wants to talk and inquire how much the client knows. We want to compare rates with other lenders to explore if a transfer to another institution will lead to more savings.

2. We review your current circumstances

Nothing in life is guaranteed but change. We want to know the following:

How is your family life changed? Divorce, kids, etc.

Has your job situation or income dramatically changed?

Have you incurred large outside debt balances?

Is your lender charging higher rates or strict terms

Two recent transfer examples from 2023

A) A professional couple who are earning more money have decided to focus on their kids. As their mortgage matures, they no longer care to be mortgage free. They want the lowest payment to enjoy family time.

Result: we were able not only to put them in a lower rate, but extend their amortize ation to 25 years.

B) A major lender offered our existing client a new three-year term at 5.71%. We were able to offer 4.89%. The total savings were over $2700.

C) A recent clients mortgage was maturing. We were informed that they were taking a new job out of province.

Result: we strongly encouraged to stay open on their next term. Why? To avoid a penalty if they locked into a fixed term.

It pays to call us and educate yourselves so that you can make the best decision possible for you and your family.

What is the negative to transferring your mortgage? Unfortunately, a new application is required which will include updated verification of income, home insurance, and property tax verification.