Mortgage payments are the most single largest expense for Canadian homeowners. Yet, nearly 27% opt for automatic renewal at the end of their term, even though most fail to seek out a better deal.
Looking for a better renewal deal can lower your payments. Here are 5 tips that can make the renewal process seamless.
Get an Early Start
At least six months before your mortgage renewal date, you want to start looking into what other deals may be available to you. The reason for this is because most lenders will also provide you with a six-month guarantee for your discounted rate.
Do Your Research
Rates are one thing that can vary tremendously. If you’ve gotten your mortgage from a bank they may not provide you with the lowest renewal rate. This leaves plenty of time and room for investigation.
Check out websites for potential rates to get a good idea of what other lenders have to offer prior to negotiating with your bank.
Most importantly, check out your lender’s competition. If you’re happy with the advice, features and policies of your current lender, it’s possible that you can also negotiate a price match to get an even lower rate. Use your investments and other asset accounts as leverage during your negotiations by offering to transfer them to secure the lower rate.
There are Other Options Available - So Always Negotiate
Aside from the interest rate, you can also negotiate on the time period you need to repay your mortgage in full, therefore paying it off sooner and lowering the amount of interest you pay. Negotiate on your fixed or variable rates and don’t just settle for what you’re offered. Do you need a flexible payment schedule? Why not negotiate that too? These two things can also help greatly with lowering your overall costs.
Time to Change Lenders?
The sad truth is…As good as your current lender may be, you can probably do a whole lot better. Don’t allow yourself to become the borrower who never considers changing lenders. If you’re looking for better rates, a better term or something else, consider other lenders. As long as you do the switch at the time of your renewal you won’t face any penalties.
Get Your Mortgage Broker in on Your Negotiations
It’s not uncommon, and know that you’re not alone, if you don’t like negotiating. Bring your mortgage broker in on the action, they are experts into these types of negotiations. They are also a great resource for rate research too.
By getting your mortgage broker involved you could save a couple thousand in interest, get better rates and have less restrictions on your mortgage.
When we say YES! We stand behind our promise.