When your mortgage is up for renewal you’re a free agent. At that point, you’ll have no penalties to move your mortgage somewhere else and most places will cover the cost of your appraisal and legal fees in order to get your business.
A friend was in that position and was given the posted (insanely high) renewal rate for five years. She was told: Yea, that’s the best we can do. One phone call later and she had a rate half a percent lower. She called back her big bank and was told by the same lady: OK, we’ll match that. Another day with another lender and she received an email that they’d do it for a full percent less. Again, she went back to her big-five bank who indicated they’d also match that!
But rather than going to the lender who gave her a full percent off, she stayed with the big bank! TWICE they obviously wanted to take her for a ride at an inflated rate. Yet she ended up giving them the business? That’s just so wrong in so many ways. Well, it’s easier was her response. Easy? They tried to shaft her.
I don’t have an answer, but I’m quite sure that businesses who offer a better price, product or rate up front will stop doing so if we don’t end up supporting them and just use them to hold others accountable.