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What to Watch Out For When Renewing Your Mortgage

It is still baffled by the number of banks that try to impose a high interest rate on existing customers when renewing a mortgage. They hope people will accept that they are higher than the market rate quote and not compare rates with other lenders. Evidently, these customers are much more common. You can also renew your mortgage through

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You may have experienced this bank strategy firsthand. You receive a renewal letter from the bank offering you a fixed-rate mortgage for five years at 5.49%. Then you visit their website to find that they offer a teaser rate of 4.39% for the same type of mortgage loan. It's a joke!

Banks don't seem to care about offering customers the best option. They don't feel compelled to reward loyal customers with fair offers. It would be reasonable to expect that banks would recognize that it is cheaper to retain an existing customer than to find one new and that they would feel compelled to take care of their existing customers.

They would rather offer their customers high-interest rates and catch those who aren't paying attention. This is a terrible business practice and a travesty. The customer will soon find out they were stuck with a high-interest rate.

If you find yourself in a difficult situation to renew your mortgage, and are offered one of these outrageous rates, get in touch with your bank. Ask them why they want to push you with a low rate. Don't listen to them talk about their standard rates and other nonsense. 

You should let them know that you will only get one chance to provide you with a quote. They must also inform you that you are entitled to the lowest rate and terms that they can offer.

Talk to a mortgage advisor to compare the rates and terms. It should be easy to choose the right provider for you.