If your mortgage is up for renewal in the not-too-distant future (say, the next 120 days) you could definitely benefit from shopping around—or getting a mortgage broker to shop around for you. That’s because the deal your existing lender is offering probably isn’t the best one out there.
True, this isn’t an option for everyone. If you can’t qualify for a new mortgage at another bank’s posted five-year rate or the Bank of Canada’s benchmark rate (whichever is higher), you may be stuck with your existing lender. But that’s not the case for everyone.
For example, according to the Globe, mortgage holders that acquired an insured mortgage before Oct. 17, 2017 do not have to take the mortgage rate stress test, according to CMHC. “In other words, some lenders will only make you prove you can afford payments based on their discounted five-year fixed rate (e.g., 3.49 per cent) instead of the Bank of Canada’s posted five-year fixed rate (e.g., 5.34 per cent).”
As a mortgage broker, I know who those lenders are—and I’m familiar with all the recent regulatory changes surrounding mortgage renewals. Contact me before signing on the dotted line with your existing lender.