Now is the time to take advantage of an early mortgage renewal

There is some confusion among current and potential homeowners on how the latest Bank of Canada rate drop will affect mortgage rates. Mortgage Brokers are dealing with many refinancing inquiries due to this confusion. Like the Bank of Canada's previous rate cut, not all mortgage lenders have jumped at the opportunity to drop their prime rate. Those that have, again only dropped it by 0.15%, not reflecting the Bank of Canada's 0.50% drop. The adjustment of the financial institutions prime rate will affect variable rate mortgage holders. They'll see a slight drop of 0.15% on their mortgage rate.

With the latest drop in variable rates and today's record low fixed rates, mortgage holders that have renewals coming due in the next four-to-six months can take advantage of an securing a mortgage rate by speaking with a mortgage professional today. Canada Mortgage and Housing Corp.'s 2015 mortgage consumer survey showed that 60% of people renewing a mortgage arranged their renewal ahead of their maturity date. By doing so, they've been able to give themselves enough time to shop for the lowest rate and consider which mortgage product would serve them best. Homeowners needs can change throughout the years and the mortgage you obtained 5 or 10 years ago may not be suitable for your future needs. It is for these reasons that speaking to a mortgage professional is important during your last few months of your mortgage term.

Click here to read the full article at The Globe and Mail.