6 Tips to Help Renew Your Mortgage
The biggest monthly expense for most Canadians is their mortgage payment. So before you decide to renew with your current mortgage lender, take a look at these tips to help lower your payments come renewal time.
1. Get Started Early
Start shopping around for a better rate four to six months before your mortgage is up for renewal.
This is the longest lenders can guarantee a discounted rate. If your current lender’s rate rises, you have your guaranteed rate to fall back on.
3. Never Accept the Bank’s Posted Rate
If you don’t ask for a better rate, you won’t get one. If you current lender has the best mortgage features, advice and policies, ask your bank to match a competitor’s lower rate.
4. Negotiate on other Available Options
The amortization period, the rate type (fixed or variable) and the flexibility of the payment schedule can also determine ways to lowering your costs, not just the interest rate.
5. You Can Change Lenders
A lot of people renew with their lender and don’t even think about switching to another one. You could be missing out on what other financial companies are offering, plus there is no penalty if you switch at renewal time.
6. Use a Mortgage Broker
If you don’t like negotiating and don’t have the time to research rates, a mortgage broker will do ALL the legwork for you — even without charging you anything, since they are paid a commission from the lenders.
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).