It still astounds me, in regards to renewing a mortgage, to see how oftentimes banks will try and saddle their existent customers with a high interest rate, hoping people will receive their higher than market rate cite without ever comparing rates to other lenders. Apparently, there are more of these type of clients out there than i would have ever suspected.
Perchance you have seen this bank tactic first-hand. The bank sends a renewal letter providing you a five year limited rate mortgage at 5. 49% and then you go to their website and find out that they are providing 4. 39% on the very same type of mortgage loan as a teaser rate to attract new customers. What a crock!
Apparently banks don’t appear to be engaged with providing their current customers the choice that is best for the client. And apparently they feel no compulsion to reward their customer’s honesty with a reasonable offer. One would think that the banks would acknowledge that it is fewer high-priced to keep an existent client than it is to go out and find a new one and that this cognition would compel them to be concerned about their existent client base.
Instead, it seems they would quite offer highball interest rates to their existent customers and try to catch the people that are asleep at the switch. Sooner or later the client is going to find out that they got stuck with a high rate and i doubt very much that they’ll look forward to doing business with that bank in the future.
So, next time you’re in a position to renew your mortgage and you get one of these highball quotes, call your bank and hold their feet to the fire. Ask them why they are attempting to stick you with a bad rate. Then refuse to acknowledge the speech they give you in regards to their ordinary rates, etc. And call their bluff.
If you do decide to get a cite from them, make sure they know that they are only going to get one opportunity to give you a cite and that they better give you the best rate and terms they have to offer, with no shenanigans.
Then check with a mortgage planner to check for both the rate and the terms that are being offered. Your choice of suppliers had better be apparent; they’ll be the provider that is looking after your best interests in front of their own.
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