Let me ask you a simple question. Do you think your bank has your best interest at heart? If you answered no or are at least concerned that you may not get the best offer possible at your mortgage renewal…then read on.
Robo Bank Mortgage Renewal
In the age of technology, the banks have adopted more and more automation as part of their mortgage renewal process. To them, this means less humans and having to pay less out to said humans.
To you, this means that unless you put your hand up and say ‘Hello, I’d like to actually speak with someone about this.’ that you are not going to get your questions answered.
Would it surprise you to discover that the majority of bank mortgage mortgage holders renew at their maturity without even looking to see if they can get a better offer? I’m sure you are not one of them.
So this is what we know. The bank doesn’t care if you get the best offer that is available out there. They don’t notice your worth as a human or see your individual hopes, dreams, and goals. I want to offer you a different experience.
The Difference Between Refinancing And Renewing Your Mortgage
So you have received a renewal letter in the mail from your bank and are wondering if it is just a checklist item (like put out the garbage) and get back to Netflix? Um…no.
Is renewing my mortgage the same as refinancing?
No, renewing is continuing with your existing lender. The only thing that changes on renewal is you will have the choice of a new term (1 – 5 years, fixed or variable) at the interest rates that come in your renewal letter.
Refinancing is when we look at a new lender. What can change is the loan amount (increase or decrease), the amortization (affects monthly payment), the terms (specifically the penalty to break the mortgage in the future), and the choice of time (1 – 5 years, fixed or variable) at the best interest rates that you qualify for.
What happens when my mortgage is up for renewal?
You have a few options:
- You can sign back.
- You can call the bank and hopefully speak with a human (not the same human as last time) who can help you get a better deal. But only from their mortgage products.
- You can speak to a Mortgage Broker who can help you look at all of your options.
It’s worth taking the time to find a Mortgage Broker who will give you the opportunity to find what is best for you. You will know within a couple of minutes of speaking with them on the phone if they are looking to quickly peg you to a product or if they are wanting to get to know you. My clients enjoy that I want to know what makes them happy and that I help them any way I can to pursue it.
Find out more about all of the things you need to know about your Mortgage Refinance.
The Only Important Mortgage Question
Ultimately, there is no one answer for every mortgage holder. It may be better for you to renew today. Your neighbor may be better off refinancing. There is only one question that really matters and it isn’t being asked by your Robobanker:
What is the best option on renewal for you the customer? Renew or Refinance?
So don’t slip back into the world of Netflix and abandon your dreams so easily. Not every mortgage provider looks past you impatiently at the next mortgage number on hold.
I see the future you making a cameo appearance in the film of your life. You are walking taller now. Your loved ones notice that you have taken the initiative in this area of your life and it shows up in the pride in their eyes. Time to get off the couch and call me. Or text from there…that’s fine too.