Renew With Someone New

by Darrin DeRoches May 29 - June 4, 2014

One would think being loyal to a lender or insurance company would bring the best results in premiums and rates but you are totally naive to think this. Every time your renewal comes up for your mortgage or insurance policy, change companies! I have been with CIBC for over thirty years and that means absolutely nothing when my mortgage comes due. They have two of my mortgages and that fact also means nothing to them. Insurance companies tell you about these multiple savings and I just questioned them about my renewal and their solution was to increase my deductible by $2500 to five grand and they would give me a 4 per cent deduction or about $130 a year or just about $10 off a month to stay with them. Remember they are already over charging me and have three houses, a commercial property and vehicle insured so their solution is to up my deductible so that if I actually ever use the insurance, I will be out $2500 more and they will drop my premium by $10 per month. So if I was to do the math, that would save me about $1,300 in ten years so if in the next 20 years I would save the increase of $2,500 in deductible to a plan that is already overpriced on just one property of several they are insuring.     There was a study done to prove that staying with your mortgage company upon renewals is the worst case situation. They may give you a so–called discount but if you took that same mortgage to a broker they will get you a better discount and it costs you nothing but time and energy and that is the real issue. Taking the time and energy to send some paperwork and make a few calls to a broker is why most people just renew thinking they are getting the best deal. In some cases you may only save a little and in some cases a lot. Why? The time you renew certain lenders may have some great deals to “drum up some business” and if your timing is right you can save a ton of money. Most people are afraid that the bank or insurance company will not cover them while they shop around but it only takes broker hours to find a better deal. A couple of days if it is a busy time.     I have to get on the phone once I finish this article and find a new broker for my insurance since their solution of increasing my deductible is not only insulting to my intelligence it made me realize how much I hate dealing with insurance – but it is time to make the move. First time buyers get better deals than anyone with loyalty so if you are up for renewal give us a call and we can guarantee you a better deal with brokers we deal with. It takes a little time but it will save you money! V     Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at sold@uniquerealty.ca.