6 Tips to Help Renew your Mortgage
1. Get going early – Don’t wait until the last minute! Renewal time is the best time to switch lenders because there is no penalty.
Did you know that we can hold an interest rate for 120 days? Having your renewal mortgage approved 120 days in advance ensures that you are protected in the event rates spike just prior to your renewal date. One of our Mortgage Professionals would be pleased to assist you with your mortgage planning needs. Call our office today to realize even better service and savings than what you thought you already had!
“If rates rise, you’ve got your guaranteed rate to fall back on. If they drop, you simply renegotiate a lower rate.”
2. Do your homework – Research.
Before negotiating a lower rate from your bank, find out what other lenders are offering. Plenty of websites post current rates from all the banks which can vary widely.
3. Even Easier Have Your Mortgage Broker Shop Around at no cost to you! Hiring a broker is a smart option because it will take time, effort and knowledge to shop around for a better deal.
Mortgage brokerages have relationships with lenders and have access to great products, they will do the leg work for you, find the best deal, write the proposal and submit it to the lenders that are best suited for your current needs. Because brokers are specifically trained to work for you and your new mortgage they often find you a better mortgage package and save you money than doing it alone. The best part of this is it doesn’t cost you anything.
4. Never accept the bank’s posted rate – The Posted Rate is Not The Only Rate
“You might as well hand your wallet over to the lender.” If you determine that your current lender has the best mortgage features, advice and policies, ask your bank to match a competitor’s lower rate.
5. Negotiate on other available options – Knowing All Of Your Options Is Critical During The Renewal Process
Don’t just fixate on the interest rate. The amortization period, the rate type (fixed or variable) and the flexibility of the payment schedule can be crucial to lowering your costs. If you don’t ask for it, you won’t get it.
6. Did you know
Saving even half a percentage point on your mortgage rate can save you up to $10,000 over 25 years (based on a $150,000 mortgage).
Don’t sign that mortgage offer from your existing bank! Studies show that over 70% of Canadians will renew their mortgage with their existing lending institution without negotiating rate or terms. This is not the wisest strategy as they could be missing out on HUGE savings.
Completing an application will allow us to help you implement a strategy of your own and notify you of relevant mortgage products and rates prior to renewal.