If your mortgage is up for renewal, you bank or lender is required to give you at least 21 days’ notice. Normally at that time, they will also include an offer for renewal. But since most Canadians just blindly accept the first renewal offer, chances are that the lender is not giving you the best rate that they are authorized to give.
Taking the time to negotiate a better rate on your mortgage renewal may seem like a hassle, but it is a hassle that is well worth it. It can save you thousands of dollars.
The following are a few of our top tips on how to negotiate a better rate on your mortgage renewal.
- Do your homework. Find out what other lenders are offering.
- Talk to your mortgage broker. Mortgage brokers have access to dozens of lenders and some of the best rates available. Your broker even has access to lenders that you can’t access without a broker.
- Contact your current lender and ask for a better rate. When you are negotiating with your bank or lender, if you have been a long-time customer, remind them of that fact. You can also ask them if they have any deals or promotions for new customers which could be applied to you.
- Think about your current financial situation. Has it changed and enabled you to make higher monthly or bi-weekly payments? This might allow you to pay off your mortgage sooner.
- Mortgage renewal time is also a good time to think about the type of mortgage you have. Is this a good time to switch from a fixed-rate mortgage to a variable-rate mortgage or vice versa? Your mortgage broker can go through the pros and cons of each type and help you decide what is best for you at the current time.
When should you start thinking about your mortgage renewal?
It is best to start thinking about your mortgage renewal several months before your renewal date. This will give you time to consult with your mortgage broker and explore your various options before you are pressured to do so.
If your mortgage is coming up for renewal, it is time to start thinking about how to get the best rate. For assistance with this, contact Akal Mortgages today. A member of our team would be happy to help.
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