Toronto Home Owners Can Also Take Advantage Of Today’s Low Mortgage Rates
If you’re an existing house or condo owner in Toronto, and your mortgage is coming up for renewal soon, it’s a great opportunity to lock in at historic low rates! Right now the five-year fixed rate mortgage can be obtained for about 3.5% at many lenders.
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Typically your existing mortgage lender will automatically send you a renewal letter approximately 30 days prior to your mortgage maturity date. That letter will offer you several options for your renewal including various mortgage terms and the rates your lender is offering for each of them. You’ll be given an opportunity to check off which term/rate you want for your mortgage renewal.
As your mortgage maturity date approaches, this is an opportunity for you to also switch your mortgage over to another lender, often at no cost. The new lender wants your mortgage business so they’re often willing to pay for the legal expenses of making that switch.
Here are some of the options that you can take advantage of…
- Renew with your existing lender – you can usually do this up to 2-4 months prior to your mortgage maturity date (depending on the lender) without incurring any penalty
- If you’re open to moving your loan over to another mortgage lender, you can get pre-approved with that new lender and lock in the new rate for three to six months prior to your existing mortgage comes up for renewal. That way you can take advantage of the current exceptionally low rates
- Imagine your mortgage maturity date doesn’t come up for several months. There is one lender at least right now who will give you an excellent rate plus a ‘cash back’ of 2% or 3% depending on the size of your mortgage. You can use that cash back to pay any discharge penalty from your existing lender
As with anything in life where there are many options available to you, you need to consult with an expert. I’ve learned from experience that the typical person in a bank branch who does mortgages ‘sometimes’ along with car loans, lines of credit, etc is not an expert in the field of mortgage finance. You need to be talking to a professional!
I’ll give you the names of two mortgage consultants who are experts in the field of mortgage financing. Call or email them and describe your particular situation. They’ll give you unbiased advice about what the best alternatives are for your particular situation. As usual, feel free to call Sally or myself with any questions too.
George Christopoulos is the broker of record at the Mortgage Centre branch on Queen Street in Toronto. His direct number is 416-721-9299
Stephanie Matheson is a mortgage specialist at TD Canada Trust and travels to client’s homes to discuss their mortgage needs. She can be reached at 416-885-5402.
Toronto Home Owners Can Also Take Advantage Of Today’s Low Mortgage Rates is a post from: Toronto Real Estate Updates