Are Mortgage Renewal Rates Higher Than Purchase Rates?
Nanaimo’s Mortgage Renewal Experts
Helping local homeowners secure better rates and stress-free renewals across Vancouver Island.
Understanding Mortgage Renewal vs. Purchase Rates in Nanaimo, BC
When your mortgage term approaches its end, one of the most common questions homeowners ask is whether mortgage renewal rates differ from purchase rates. The answer isn’t always straightforward — it depends on several market factors and your unique financial situation.
🔍 Current Market Dynamics
Mortgage renewal rates can be either higher or lower than purchase rates, depending on current market conditions. In today’s competitive environment, many lenders offer attractive renewal rates to retain existing customers — since acquiring new clients costs more than keeping current ones.
Why Renewal Rates May Be Lower
Your existing lender already knows your payment history and financial behavior. This reduced risk can translate into better renewal rates. Additionally, you’ve likely built equity in your Nanaimo home, which improves your loan-to-value ratio and can qualify you for preferred rates.
Pro Tip
Building equity strengthens your negotiating power at renewal time
When Purchase Rates Might Be Better
Sometimes, lenders launch promotional purchase rates to attract new business that are lower than standard renewal rates. This is why shopping around is crucial for Nanaimo homeowners approaching mortgage renewal. If you’re purchasing a home with less than 20% down, you may qualify for lower high-ratio mortgage rates — though these are subject to a mortgage insurance premium.
The Nanaimo Advantage
Living in Nanaimo’s stable real estate market gives homeowners a strong position when negotiating mortgage renewals. Property values have remained steady, which helps you secure favorable terms from lenders.
Professional Guidance Matters
At Oceanvale Mortgage & Finance, we analyze both renewal and purchase rates across multiple lenders to ensure you get the best possible deal. Sometimes staying with your current lender makes financial sense, while other times switching can save you thousands over your mortgage term.
Don’t assume your lender’s renewal offer is your best option. Our unbiased approach means we’ll recommend staying with your current lender if that’s truly your best option — or help you switch if better opportunities exist elsewhere.
Contact Oceanvale Mortgage & Finance for a comprehensive mortgage renewal analysis.