if you have a mortgage, that mortgage will have a term and an amortization. Let's say the term was five years and the amortization was 25 years. The term is the period of time over which the mortgage is a contract. At the end of that term (called the maturity date), you may still have 20 years left to go. The lending institution that lent you the money originally will, in all probability, offer you an extension of the mortgage (called a renewal) when your term is up.

Most of these lenders will give you about a 15-40 day notice of your impending maturity date. If you approach them early, say 3 months ahead of time, to take advantage of the low rates offered today, they will simply tell you that your maturity date is still some time away, so they can't lock in rates for you right now.

If you presented yourself to another lending institution within that same 3 month period, that lender would bend over backwards to guarantee you a rate and sign you up as a new client. The inverse is also true; if you were a potential new client to your existing lender, they would certainly offer you (as a new client) a locked-in mortgage rate. As an existing client....you must wait until the last minute to get news of what rates are going to be.

I am discussing this topic now because traditionally, in RRSP season, mortgage rates go up in February, March and April. If your mortgage comes due in April, May or June, wouldn't it be nice to know the maximum rate on your pending renewal? That is exactly the point I am trying to make. I have been contacting people whose mortgage will mature in the spring. I have offered them a guaranteed rate now (even if their mortgage maturity is not for another 3-4 months), a further guarantee that if rates go down, they will get the lower rate. I have offered them this service free of charge (since the new lender will pay me a commission for the new business). I should be booking 100% of people I call and yet, I am batting just over .450. Now that is a great average in baseball, but in mortgage renewal guaranteed savings, I think that is a horrible success rate.

I am writing to these people, telling them of the guaranteed savings, explaining the program, telling them that I will contact them in a few days. When I call, few have taken the time to read the material and even fewer take me up on my offer. I can't understand why! If I were offered today's rate on a mortgage that won't mature for another three months, especially when my present lender won't accommodate me with the same deal (although they would if I were a new client), a further guarantee that if rates decline between now and then I will be given the lower rate, all this at no cost to me, I would jump at the deal. I really did expect to sell more than 45% of people I talk to? Complacency has set in!