Hey there! If you’ve got a mortgage, you probably remember that mix of excitement and "oh boy, this is a big deal" when you first signed your papers. Fast forward a few years, and you might find a letter in your mailbox from your bank. It’s your mortgage renewal notice.
It looks official. It looks easy. It usually says something like, "Hey, just sign here and you’re good for another five years!"
Stop right there.
Before you pick up that pen, let’s chat. I’m Luis Ow, and I’ve seen way too many people in Saint John, Moncton, and Fredericton simply sign that letter and leave thousands of dollars on the table. My job is to make sure that doesn’t happen to you. At M.O.S. MortgageOne Solutions Ltd., we believe your renewal is actually a massive opportunity to hit the "reset" button on your finances and make your mortgage work for you, not the bank.
Why Your Bank's Renewal Offer Isn't Their Best Offer
Let’s be real: banks are businesses. When they send out that renewal letter, they aren’t sending you their absolute lowest, "friends and family" rate. They’re sending you a "convenience rate."
They’re betting on the fact that you’re busy. They’re betting that you don’t want to deal with the paperwork of switching. In the industry, we sometimes call this the "lazy rate."
Research shows that the first offer from a major bank can be anywhere from 0.30% to 0.80% higher than what you could get if you shopped around. That might not sound like much, but on a $300,000 mortgage, that small difference can cost you over $10,000 over a five-year term. Imagine what you could do with an extra ten grand in your pocket!
The Luis Ow Advantage: Broker vs. Bank
When you walk into your local branch in Sussex or Saint John, that person behind the desk can only offer you products from that specific bank. It’s like going to a shoe store that only sells one brand: you might find something that fits, but you’ll never know if the store across the street has a better deal.
As your mortgage broker, I work for you, not the lenders. I have access to dozens of different lenders, including major banks, credit unions, and "monoline" lenders that only work through brokers.
Here’s why shopping around with me beats the bank every time:
- Multiple Quotes, One Credit Check: I shop the market for you. You don’t have to spend your Saturday driving between Moncton and Fredericton to compare rates.
- Customized Solutions: Maybe your life has changed since you first got your mortgage. Maybe you’re now self-employed, or you’ve had some credit hiccups. I find the lender that fits your current situation.
- Unbiased Advice: I’ll tell you straight if your current bank’s offer is actually good. If it is, I’ll tell you to stay! But if it’s not, I’ll show you exactly how much you can save elsewhere.
The Math: What You Save at Renewal
Let’s look at a quick example. Suppose you have a $350,000 balance left on your mortgage in Saint John.
- Bank Offer: 5.0% Fixed. Your monthly payment is about $2,035.
- Luis’s Best Rate: 4.2% Fixed. Your monthly payment is about $1,880.
By switching, you’re saving $155 every single month. Over a 5-year term, that’s $9,300 stayin’ in your bank account instead of going to the bank's bottom line. That’s a pretty great family vacation or a big chunk of your kid's college fund, right?
Things to Consider Before You Switch
I’m all about transparency, so I want you to know the full picture. While switching lenders can save you a ton, there are a few things we need to look at together:
- The Stress Test: If you move to a new lender, you generally have to "re-qualify" under the current stress test rules. I’ll help you run the numbers to make sure you’ll pass with flying colors.
- Appraisal and Legal Fees: Sometimes switching lenders involves a new appraisal of your home or some legal paperwork. The good news? Many of the lenders I work with will actually cover these costs just to get your business!
- Collateral Charges: Some banks register mortgages as a "collateral charge," which can make them a bit stickier to move. Don’t worry, though: I know how to navigate these and can tell you exactly what it will take to make the switch.
Your 4-6 Month Renewal Game Plan
The biggest mistake people make is waiting until the last minute. The bank usually sends that letter 30 days before your term is up. By then, you’re in a rush and more likely to just sign it.
Here is my recommended timeline for homeowners across New Brunswick:
- 6 Months Out: Give me a call! This is when we start looking at the market trends.
- 4 Months Out: We can often "lock in" a rate. If rates go up, you’re protected. If they go down before your renewal date, we grab the lower one. It’s a win-win.
- 2 Months Out: We finalize the paperwork. No stress, no rushing.
- Renewal Day: You transition to your new, lower-rate mortgage without skipping a beat.
Let’s Get You a Better Deal
Your mortgage is likely your biggest expense. Why would you settle for "okay" when you could have "great"? Whether you are in Moncton, Saint John, Fredericton, or anywhere else in our beautiful province, I am here to help you regain control of your financial future.
Don't let the bank dictate your financial path. Let’s look at your options together and find the solution that fits your life and your goals.
Ready to save? Let’s talk!
I offer personalized mortgage solutions across all of New Brunswick. Reach out today for a no-obligation review of your renewal offer.
Luis Ow
Phone: 506-650-7551
Email: luis@mortgageloansnb.com
Website: mortgageloansnb.com
Luis Ow Personal License #: 250042903
Brokerage License #: 210053949
