In today’s volatile interest rate environment, I can’t overstate the importance of taking advantage of a full 120 day preapproval period.

At Direction Mortgage, we call all our existing clients at least 4 months ahead of renewal since we know that this will give us the greatest opportunity to lock in the best rates.  We simply secure the best rate available and improve the rate if bond yield fall, and lower mortgages rates become available.

Why does you bank wait to send a renewal offer one month before your renewal?  The banks have the information to help their clients save money offering renewals 4 months before maturity, but instead the banks deliberately choose not to help their clients.  But why?


For Canadian banks, waiting until 1 month before renewal is incredibly profitable strategy as this helps them segment their clients.

If you are waiting for a renewal offer, your bank knows that you are either (1) not price sensitive, so the rates you see do not reflect the best rates available or (2) unable to qualify at another institution.

By charging clients more on a renewal offer, the bank makes more money.

In addition, as we have seen consistently over the last 18 months, in a rising interest rate environment, rates can be lower to much lower 4 months ahead of your renewal than 1 month before your renewal.

For example, todays 5-year fixed rates are 0.5% higher than they were 3 months ago. Too bad some people are waiting to see what their bank will offer.

Let me know when you would like to have more money.  I can help.  This is one small example (we also call our clients when they can save by refinancing but that’s a story for another day…)

Thanks again.

Give me a shout if you want to understand your options 416-769-1440 or email with any questions.