As a professional mortgage brokerage, we identified a critical problem with the way mortgages are being managed…
Mortgages aren’t being managed at all
You’re probably thinking: “What do you mean managing a mortgage? I have a mortgage and when it renews, my lender will give me a good deal on renewal.”
Well, you need to read the two Facts below to understand what we mean:
FACT # 1
The unfortunate truth is that many Canadians have missed out on opportunities to save money on their mortgage over the last decade. Most Canadians think they are stuck in their mortgage until the end of their term -the fact is that you’re not stuck in your term – if rates drop, there may be an opportunity to save money or to get a lower rate for a longer time period. Of course, most lenders won’t let you know that you can get a better rate, because it’s their interest they are losing.
FACT # 2
When your mortgage comes up for renewal, lenders know that less than 40% of homeowners look at other mortgage options from other lenders – so take a guess how good a rate they will offer on your renewal notice. Over 85% of home owners renew with the same lender. Our own research shows that 9/10 homeowners are offered a renewal at a rate that is higher than the best rates at that time.
We treat each mortgage like a financial planner treats an investment portfolio; we constantly review the mortgage to ensure it is performing the best it can be based on current market rates. Many situations arise where there is an opportunity to save money during your mortgage term, especially when rates are at historic lows. In fact, in the last 5 years 43% of our clients have paid their mortgage out early to take advantage of interest saving opportunities. Additionally, when it comes to mortgage renewals, we have a very powerful system in place to ensure our clients have the opportunity to get the best rate the market has to offer when their mortgage comes up for renewal.
We know that this comes as a surprise to most home owners. You would think that once you take a mortgage with a particular lender, that they would have some sort of process in place to minimize your interest over the life of your mortgage. But the truth is, they don’t
All of our clients get to experience the interest saving advantages of our management system. The Adopt-my-mortgage Program gives mortgage holders who are not current clients the opportunity to have their mortgage managed by our professionals for the remainder of their current term. With very basic mortgage information our professionals are able to regularly analyze your mortgage and if we find an opportunity to save you money, we will contact you directly with a full performance report. When you first sign up, we will complete a report for your as to how your mortgage is performing in comparison to the market just as an added bonus.
As we have a limited capacity as to the number of mortgages we can manage on a regular basis, we do not always offer the Adopt-my-mortgage program. To find out if we are currently taking on additional mortgages in your neighbourhood for the Adopt-my-mortgage program, call us today!
FREQUENTLY ASKED QUESTIONS ABOUT THE PROGRAM
Q: What kind of information will you need from me to start managing my mortgage?
A: Information we will need to start managing your mortgage today includes:
- Mortgage Balance
- Name of lender (bank, credit union, specialized lender)
- Current Rate
- Renewal Date
- How often you make your payments (monthly, bi-weekly, weekly)
- Current mortgage payment
If your mortgage is with one of the big banks, we will also need:
- Original Discount you received off the Posted Rate (The discount is the difference between your rate, and the banks posted rate at the time you get your mortgage and can be found on your original mortgage paperwork, and sometimes on your annual mortgage statement. If you can’t find it, we can estimate it but our analysis won’t nearly be as accurate)
Q: If I break my mortgage before my mortgage renews, won’t there be a penalty?
A: Yes you are correct – there will most likely be a penalty. We factor the penalty into our analysis to determine if and when it makes sense to get a better rate. If we can’t save you enough in interest to cover the penalty and save you money, then we don’t generally recommend a change.
Q: If there is a penalty to break my mortgage, do I have to pay that out of pocket?
A: In most cases we are able to add the penalty to your mortgage so you don’t have to pay it out of pocket.