Unfortunately, the mortgage renewal process can be very tricky, particularly with the potential for misleading practices like bait and switch. As your mortgage term nears its end, it’s important to be aware of these practices and know how to find your way and obtain the best deal possible.

This blog highlights essential strategies for avoiding bait-and-switch tactics when your mortgage is up for renewal.

Understanding the Bait and Switch in Mortgage Renewal

The bait and switch scheme in mortgage renewal requires lenders to advertise appealing rates or terms, which are immediately flipped after you have committed, usually leaving you with a worse and unattractive agreement. To protect yourself, it’s important to know your current mortgage terms and assess them against new offers.

Below are the best methods to avoid the bait and switch measure:

  • 1. Start early: Starting your process early is one of the best ways to avoid the mortgage renewal bait and switch. Begin at least 4–6 months before your renewal date. This gives you time to research options, review offers, and negotiate with your current lender. An early start prevents rushed decisions, which is usually exploited by bait and switch tactics.
  • 2. Keep an eye out for online adverts: Mortgage renewal fraud is often channelled through online ads, which could be sent to your email or posted on timelines of your favourite social media platforms. They are usually structured to have low rates, with promises of cashbacks when the mortgages ends—this is false. 
  • 3. Leave your options open: Don’t accept the first renewal offer presented to you. Leaving your options open gives you much needed time to research and consider other alternatives, and potentially secure the best deal. Take advantage of online resources to explore different offers across the market and compare rates, terms, and conditions from multiple lenders. 
  • 4. Review terms and conditions: Carefully examine the details of any mortgage renewal offer and pay close attention to details concerning payment fines, interest rates, and any other potential risks. If anything seems unclear, ask for clarification.
  • 5. Obtain a written agreement: Be certain to obtain a written record of all terms to avoid misunderstandings and establish clarity. A written agreement serves as a legal reference for any future issues. Oral agreements can be readily forgotten or sometimes misunderstood, potentially resulting in bait and switch situations. 
  • 6. Consult a mortgage renewal expert: Consider using a mortgage broker to manage and navigate the renewal process. They can access a wide range of lenders, assist you with finding the best deals, and help you avoid mortgage bait and switch schemes.

Stay Ahead of Mortgage Renewal Fraud

Some mischievous mortgage firms are inventing enticing loopholes that can pass as authentic and lead to financial complications, such as increased payment plans and interest rates.

While the suggested tips above are proven strategies that can help you stay a step ahead of bait and switch practices, consulting the best mortgage firm in Canada, Northwood Mortgage, is your best bet to obtain the best terms.

For more information, call us at (416) 969-8130 or contact us online for a tailored approach to your needs.