So much has changed with Canada’s mortgage laws over the past few years, and it’s sure to affect how your renewal goes this time around. The economic climate and lack of new home buyers have also made banks hungry for new customers. Even though the penalty can be steep (usually the highest of either the interest rate differential or three months of interest), many people are choosing to renew their mortgages ahead of time anyway. There are three main reasons why people moving forward early, despite the obvious drawback, and there’s a good chance you’ll want to as well, if you fit into one of these categories.
- You Want to Lock in Super-Low Rates
Interest rates are at a historical low right now, and it’s unclear when they will begin to climb again. This, in and of itself, is enough to get people locking in fantastic rates. Banks are sending out renewal letters with competitive offers on the first round, in the hopes that they can hold onto the same customers. While renewing with the same bank means that you can avoid early renewal penalty fees, and you may be able to get a better rate, it’s still worthwhile to shop around a bit before committing. The promised rates are likely to be valid for at least a couple of months, giving you ample time to see what else is available.
Full article here: http://mytoba.ca/life/mortgage-advice/3-new-reasons-you-should-renew-your-mortgage-early/