Why brokers are so valuable for renewals

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With our busy lives we strive for things to be easy and that will often apply to mortgage renewals too. It might seem an easy option to sign and return the renewal form and let the lender take care of the rest, after all the rate they are offering seems ok. Writing in the Globe and Mail, wealth adviser Ted Rechtshaffen of TriDelta Financial points to the importance of shopping around. He was offered a renewal that was 2 per cent higher than a deal he was able to get elsewhere and when he phoned his existing lender he was offered a far better deal. He was also told that a lot of people just accept what is offered. Some people may phone around but clearly a broker is an even better choice and the story highlights how important it is for brokers to follow up with previous clients as their renewals approach. Read the full story.
  • welbanks on 2014-09-18 8:40:32 AM

    These articles make me laugh. I'd like to see an official statistic that demonstrates how many people actually sign that renewal notice back at the posted rates... before brokering, I spent 10 years at a bank and in all my years there, I only processed ONE renewal at the posted rate. Not to take away from the idea of shopping that rate, as you certainly should, but there's really no credibility in these statements about renewing at posted rates. Scare tactics and nothing more. I don't know about you, but I don't want to win my business with scare tactics... that's a banker's trick and I think we're all better than that.

  • Jake Abramowicz on 2014-09-18 10:49:20 AM

    Well said Lee. What I don't get is how the broker has helped Ted in this case - when Ted himself called his existing lender and got a better deal. Renewals are a fool's game - the retention teams are so incredibly strong and the 'switch' process takes very long, I don't get involved unless I know what the best BEST offer is from the existing lender, or there's a change in covenant and suddenly it's a refinance or "B" deal. Otherwise I'm not being honest with my client by pretending their existing lender is a bad scary monster.

    By the way, Welbanks must be the best name in the brokerage industry!!

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