My Personal Mortgage Renewal Story

My sister and I own a rental property together and my mortgage was up for renewal on May 8. We are planning on selling our property so the last thing I want to do is renew into a fixed term where I will be forced to pay a penalty to sell.

As I am in the mortgage business, I started phoning RBC for my renewal papers. It's a few weeks to the date and I want to be on top of it. They send the renewal papers 30days before your time is up so you are at mercy of Canada Post to receive the mail. 

I phoned RBC the first time and asked them what my OPEN mortgage options would be. They quoted me 7.25% FIXED OPEN. The sales representative did say it in a very nice way that I almost thought it sounded good. 

Think about it. 7.25% Fixed OPEN. My current rate is 2.89%. Existing rates are mid 3s.

This means......If I did not call them and I missed my renewal paperwork....they would have automatically switched me over to this product. 

So what now? I still want an OPEN mortgage at a way better rate? 

I have a HOMELINE product. This means I can restructure my entire mortgage into a Line of Credit at Prime +0.50%. (3.95%). This product option is not on my renewal term. I have to know that I can ask for it. 

The 2nd time I phone RBC Servicing, I speak with someone who knows this might be possible but I have to go to the branch. We make our appointment and we show up to do re-allocate my homeline. 

The person I met with was lovely but not sure how to do what I have requested. Now....remember. I am a mortgage broker and in the business so I am coaching her through what this means. 

Out of the next door office, an RBC mortgage specialist I have worked with in the past pops out and says, "Hey Krista, Do you remember me"? I was so happy to see her and she ended up helping the sales staff with my homeline re-allocation. 

If I did not know what was possible with my mortgage renewal, I would of been stuck in a 7.25% OPEN mortgage or worst took a lower fixed rate without understanding mortgage penalties. 

If you are up for renewal, CALL ME. I will be help you find a new better mortgage or coach you on how to work with your existing lender.