Trever Florko's Blog: Interesting Mortgage Tips from a Great Mortgage Broker:-)

Understanding How Mortgage Brokers
Stack Up Against the Major Banks

What are you being offered you at renewal?

TD Canada Trust:

Renewal letters are sent out and the rate offered is posted or the same as what was offered on the previous term.

CIBC:
Renewal letters are sent out at posted. If client signs they get the posted rate. If they go to the branch they can negotiate.

Scotia Bank:
Renewal letters are sent out at posted. Client is required to go to the branch to sign, at that point they may offer a discount if client asks.

BMO:
Renewal letters are sent out at posted. If client signs they get the posted rate. If they go to the branch they can negotiate.

Royal Bank:
Renewal letters are sent out and the rate offered is the posted or the same as what was offered on the previous term.

HSBC:
Renewal letters are sent out at posted.

Explanation: The major banks are currently renewing 80 to 90% of the mortgages they hold and of that 80 to 90% they are renewing the majority at posted rates. Paying posted rates vs discounted rates will cost you over $18,000 in additional interest in just 5 years on a $250,000 mortgage amortized over 25 years. That is a lot of money that does not need to go to the major banks, especially when you consider there is over $250 billion worth of mortgages renewing this year only!
A mortgage broker can make sure that what the bank is offering you at renewal is competitive or offer you something that will better suite your needs. The banks also tend to lock clients in for as long a term as possible, yet the average mortgage is paid out due to a sale or refinance in just over 3 years. This means that the majority of clients are paying a penalty at some point? A mortgage broker can review your options and put you in a term that better suites your future plans and allows for some variations to that plan.

If you appreciate these "Tips of the week", just think how much your friends, family and business contacts will appreciate learning a little from you? The law of reciprocity is amazingly powerful and rewarding!

Compliments of:
Karen Shale
Tel: (250) 859-4126
Web: http://www.karenshale.com
Email: kshale@lendingmax.ca

*this article is for information purpose only. Information above should not be relied on as 100% accurate. Please refer to your financial institution for more information. Rates are subject to change without notice.

Designed and developed using the GoMax Solutions CRM platform.

If you or someone you know is thinking of buying or selling a home I would love to help. Call me today! Your referrals to friends and family are always greatly appreciated and REWARDED!

TREVER FLORKO - Realtor
Century 21 Assurance Realty Kelowna
Cell: (250) 859-5990
Office: (250) 869-0101
Fax: (250) 869-0105
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Trever Florko's Blog

Monday, December 5, 2011

Interesting Mortgage Tips from a Great Mortgage Broker:-)

1 comment:

Blog Archive


Understanding How Mortgage Brokers Stack Up Against the Major Banks What are you being offered you at renewal?


TD Canada Trust:	Renewal letters are sent out and the rate offered is posted or the same as what was offered on the previous term.
CIBC:	Renewal letters are sent out at posted. If client signs they get the posted rate. If they go to the branch they can negotiate.
Scotia Bank:	Renewal letters are sent out at posted. Client is required to go to the branch to sign, at that point they may offer a discount if client asks.
BMO:	Renewal letters are sent out at posted. If client signs they get the posted rate. If they go to the branch they can negotiate.
Royal Bank:	Renewal letters are sent out and the rate offered is the posted or the same as what was offered on the previous term.
HSBC:	Renewal letters are sent out at posted.
Explanation: The major banks are currently renewing 80 to 90% of the mortgages they hold and of that 80 to 90% they are renewing the majority at posted rates. Paying posted rates vs discounted rates will cost you over $18,000 in additional interest in just 5 years on a $250,000 mortgage amortized over 25 years. That is a lot of money that does not need to go to the major banks, especially when you consider there is over $250 billion worth of mortgages renewing this year only! A mortgage broker can make sure that what the bank is offering you at renewal is competitive or offer you something that will better suite your needs. The banks also tend to lock clients in for as long a term as possible, yet the average mortgage is paid out due to a sale or refinance in just over 3 years. This means that the majority of clients are paying a penalty at some point? A mortgage broker can review your options and put you in a term that better suites your future plans and allows for some variations to that plan. If you appreciate these "Tips of the week", just think how much your friends, family and business contacts will appreciate learning a little from you? The law of reciprocity is amazingly powerful and rewarding!
Compliments of: Karen Shale Tel: (250) 859-4126 Web: http://www.karenshale.com Email: kshale@lendingmax.ca
*this article is for information purpose only. Information above should not be relied on as 100% accurate. Please refer to your financial institution for more information. Rates are subject to change without notice.
Designed and developed using the GoMax Solutions CRM platform.