If you’ve bought a house in the last four and a half years, your interest rate at the time is lower than what current rates are. And let’s say you’re coming up for renewal. Unfortunately, you’re probably going to be in for a bit of a shock when you look at your current rate versus what you’re coming up for from your lender. Now what’s interesting is if you want to switch lenders right now, you have to qualify, and you have to qualify at today’s stress test rates which are quite high. So there’s a strong possibility that even if you wanted to switch lenders, you might be stuck with the lender that you are currently with. That’s not good for competition in my mind. Unfortunately, I don’t think the government’s going to do anything about changing the stress test rule around that.
So if you’re a homeowner and you’re coming up for renewal, you really should be reaching out to a mortgage broker six months before your renewal date, just to see what your options are. Hopefully we can either leverage an offer from a different lender or move you over so you get a better offer, so we can get something better than what your current lender may offer you. Unfortunately, people are going to see their payments go up so it’s a good time to be looking at your budget. It’s not fun stuff, but most of us leak money all over the place in our budgets. And renewal is a good opportunity to take a look at your overall financial health. Happy to help you out with renewing your mortgage. So if you have questions, feel free to reach out!
I have a great video on “what is a recession” too.
About Jason Scott, Edmonton Mortgage Broker
Looking for a personalized mortgage solution? As an Edmonton Mortgage Associate, I’ll be your trusted partner who will help you get the right mortgage for your family home or Investment property. I’m Jason Scott, and I’ll be your Mortgage Broker Edmonton.