Discussions

So Westoba calls me and informs me it’s time for my mortgage renewal. I thought I had one more year but oh well let’s get it done. So for the past 5 years I was locked in at 2.75 %. Now the cheapest rate is 3.29%. Have been with them for 15 yrs. Anybody have any advice?

Go to a mortgage broker and don’t just take the first option to renew! I’m with scotia and our rate is 2.19% and they wanted me to early renew as our mortgage is up in November. No I’m going to keep the lowest rate possible so my payments go further on my principal, I’ll renew in November. And if Scotia can’t give me the lowest rates I have no problem moving my mortgage elsewhere!

If you thought you have another year on your mortgage, go and check your original paperwork. It's possible they're trying to get you to renew early to up your rate as rates have risen in recent months.  
 
Like Viv says, don't take the rate they offer you. Shop around, use a broker, the same as you would if your were taking out a mortgage. If you really want to stay with Westoba, you can then come back to them and say, "Well, bank X will offer me this rate, but I'd rather stay with you. Can you match it?" And if they don't, you can jump to another provider, although I wouldn't do it until your mortgage is actually up (see paragraph above). Just be aware that rates are not the same as they were 4-5 years ago, so you might not get as low as you currently have, although you can probably do better than what they're offering you.  
 
Finally, it's important to note that the new stress test rules apply if you change providers (they don't apply if you renew with the same provider). There's been reports in the media that clients that are very close to their stress test margins (or fail them outright) are getting not great rates as the institutions know you [i]can't[/i] jump ship in those cases, so there's no incentive to try to entice you with a low rate (i.e. you're stuck).

what ever mortgage you transfer you will have to requalify now at the stress test rates which are 2 % higher than what your contract rate might be, such as your 3.29, but you need income to qualify at 5.29.  
 
if your still needing CMHC as in less than 20% equity then you will have to qualaify at the 5 year posted bank of Canada rate which is about 2% higher than any contract rate that is offered.  
 
if you can qualify at a different bank your gold. but there will be lots of people that will not be able to change banks now that these new Stress Test rules are in place.  
 
many will have to stay at thier original bank adn just renew at what ever rate they offer.

Skinny Moon said "So Westoba calls me and informs me it’s time for my mortgage renewal. I thought I had one more year but oh well let’s get it done. So for the past 5 years I was locked in at 2.75 %. Now the cheapest rate is 3.29%. Have been with them for 15 yrs. Anybody have any advice? "

Unfortunately it does not matter how long you’ve been a customer, interest rates have gone up. No one is going to offer you 2.75 right now. Westoba actually has some of the better rates right now as compared to the big banks. Switching providers could mean stress tests, appraisal fees, legal fees, etc. Don’t run just because you were possibly mistaken in renewal date. If you do have another year yet, they may be promoting you to renew as they know the rates will climb even higher. Renewing now at something like 3.29 could save you from being forced to renew at an even higher rate in a year. Do your homework, but don’t just assume Westoba is playing bad guy.