Mortgage Renewal Infromation - Rule #2

The banks have a strategy to make money.
Do you have a strategy to save money?

The next step in gaining an advantage at renewal time is to understand the renewal process from the banks point of view. They offer you a great rate the first time around to win your business. However, the banks also know how reluctant Canadian homeowners are to change. At maturity your renewal offer will list the banks posted rates. They will also wait until just a few weeks before the maturity date to send the renewal offer out. Their strategy is to leave you as little time to shop around for better deals as possible. The less knowledge you have of what else is out there, the less bargaining power you have. Their ultimate hope is for the homeowner who blindly signs the renewal offer, checks off the term they want, and pays the posted rate. This makes the bank a lot of money.