Is your mortgage coming up for renewal?  Are you ready for increased payments based on today’s interest rates?  Your current interest rate is probably in the range of 2.5-2.7% for a 5 year fixed term.

We went through years of interest rate decreases and got used to lower interest rates and lower payments when renewing our mortgages but that trend appears to be over.  Competitively discounted fixed five-year mortgage rates today run from 3.19 per cent to 3.69 per cent.

Increased rates are only a piece of the puzzle.  New mortgage-industry rules are complicating the process of taking your mortgage elsewhere if you don’t like the rate offered by your current lender.  You will have to pass the ‘stress test’ if you want to switch your mortgage to another lender.  Unfortunately some lenders, notably the banks, may use this as an opportunity to become less competitive in the renewal rates for clients that are less creditworthy.

The reason for the range of interest rates offered on renewal will depend if your mortgage was previously an insured high ratio mortgage or whether you purchased with 20% down payment.  This insurance makes a mortgage more attractive to lenders due to how they can trade mortgages on the investment market.

You should expect your mortgage renewal 30-60 days before your maturity date.  If you feel your interest rate is unsatisfactory, I would be happy to help you find a more competitive rate.  We anticipate more people will be looking to see what other options are available!

Colleen Saunders is a 25 year veteran in the mortgage industry serving Oakville, Burlington, Mississauga and Toronto and offering all mortgage related services such as 1st & 2nd mortgages, private mortgages and more.

To contact Colleen, please fill out the form on  www.mortgagesbycolleen.ca  or call 416-459-2406