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PostPosted: Fri Apr 13, 2018 10:41 am 
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Joined: Wed Jul 21, 2010 6:14 am
Posts: 62
Location: Milton, Canada
National Post released an article stating that 2018 is to see as much as 47% of all mortgages in Canada up for renewal. With the new stress test rules that came into effect Jan 1st, 2018, consumers could face a few challenges. Here is the article: http://nationalpost.com/pmn/news-pmn/ca ... ibc-report

On renewal, the bank will send you a renewal offer with new rate offers for a new term. They do not ask for any additional information unless you have had some missed payment history. You therefore do not have to re-qualify for the mortgage so you are not effected by the new stress test rules.

However, banks who take every opportunity to make more money, knowing clients may have difficulty re-qualifying for a new mortgage and therefore cannot leave them, may offer non-competitive higher rates on the renewal that clients will have to accept.

Stats have shown us that 67% of Canadians sign back the renewal offers without asking any questions. In most cases the rates are not competitive, costing $1,000's in extra interest. I have always told clients to call me with the renewal offers so we can ensure the new term mortgage is renewed at competitive rates. This is more important than ever before, especially with the new rules as the back drop.

If you are needing to move to another bank at a more competitive rate or need to take some money out, you will then have to re-qualify under the new rules. Don't let the new rules scare you. We can simply run the numbers for you to see how you qualify under the new rules. We do have some banks that are not regulated by the rules.

DON'T GET CAUGHT! Bank's are in it for the money. Email or call me with the renewal offers and let's ensure you get the best deal.

Read more here about Mortgage Renewal options: https://www.mortgagesource.biz/pages/mo ... ge-renewal

Make it a great day.

Warwick Johnston
Milton Mortgage Specialist at RBC

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