About 70% of you reading will have a Mortgage renewal in the next 12-18 months. This is for you!
How To Save At Mortgage Renewal:
- Understand LTV. LTV is a ratio of loan-to-value. It is literally calculated: loan divided by home value. Mortgage lenders offer lower interest rates based on a lower loan-to-value (LTV) ratio.
- Values are up. Calgary’s Real Estate market has seen property values rise by enormous leaps and bounds. A higher home value lowers your loan-to-value ratio.
- Mortgage balance is down. During the term of your Mortgage you’ve been paying down the principal balance of your Mortgage. A lower loan amount also lowers your loan-to-value ratio.
- Your renewal offer. Your renewal offer will likely not account for a lower loan to value ratio. Your lender will not account for your higher property value, and offer you a renewal at a higher LTV ratio.
- You call me. When shopping the market at renewal we will shop for interest rates based on your current estimated loan to value (LTV). A much lower LTV, due to values increasing and your Mortgage pay down will likely garner you lower rates than your renewal offer.
In two recent examples using this strategy with my clients renewing, I was able to lower their rate by about 0.65% compared with their renewal offer.
Friends don’t let friends renew without speaking with me first :-).
I hope this is helpful!
Chad Moore.
P.S.
If you’re a Realtor reading this, connect with me about helping your clients who are renewing at their bank. I have a plan to promote you, and assist them.
P.P.S
A big section in The Ultimate Home Transition Blueprint—Checklist is about looking forward at your renewal date, to plan out your move.
Mortgage renewal comes around ever 3-5 years, and present unique opportunities that most miss. Not you though.
Download a free version of The Ultimate Home Transition Blueprint here!
