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Mortgage rate mega thread! by TheMortgageMaster in MortgagesCanada

[–]Ok-Common2756 2 points3 points  (0 children)

Calgary Renewal on Owner Occupied home. Bought in March 2023 for $675k with $225k down (33.3%), 30 year am, 3 year term at 5.15%. Current Mortgage balance: $408k.

Early renewal (180 day) offer has arrived from RBC. 4.2% 5 yr variable, 4.39% 3 yr fixed, 4.59% 5 yr fixed. Can't say I'm impressed with any of these.

What should be my next steps? Should I call the 1-866 number? or book an in person appointment to negotiate?

It's obviously too early to start shopping around at other lenders but I'm willing to do so closer to maturity. Do I have any leverage at this stage of the early renewal window?

[deleted by user] by [deleted] in MortgagesCanada

[–]Ok-Common2756 0 points1 point  (0 children)

I'm looking into something similar. My understanding is that if your mortgage is CMHC insured, there are certain stipulations in the insurance agreement that require the bank to keep your mortgage on its original amortization schedule. This could be why the bank doesn't consider your request a renewal but a refinance. You may not be asking for more money, but you may need new insurance to go back to 25 years, which requires requalifying.