It is that time of year, time to get your mortgage renewal out of the way. Here are some tips to help you to get the most out of your mortgage renewal
1. Get going early on your mortgage renewal
Start shopping around 6 months before your mortgage renewal is up. That is the longest lenders will guarantee a discounted rate, says Vancouver’s Robert McLister, editor of Canadian MortgageTrends.com. “If [your current lender’s] 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
This is basically the same as shopping. Find out what other lenders are offering and don’t be afraid to mention some other options that were offered to you. If you ever have any questions about Mortgage Renewal, be sure to ask your Mortgage Broker or give Team Jardine a call. This is one of the biggest financial purchases you could make in your life, so we can help make sure you are comfortable and all your questions are answered.
3. Never accept the bank’s posted rate
Do not be scared to ask your bank to match the competitors offer. They will decide whether matching the rate is worth them keeping your business, or if you should continue shopping. Many people do not like to mention competitor’s offers, which is another way that a mortgage broker can help you.
4. Change lenders
A lot of people just renew with their original lender without exploring the possibility of you being able to do better. When your renewal date comes around, it’s a smart decision to browse other lenders and see what is newly available.
5. Broker a deal
If you do not like negotiating let a mortgage broker from Team Jardine do it for you. This service is usually free at Team Jardine, and we specialize in making sure that you get the best rate and find the best fit for your mortgage.
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).
All of these tips are to make things easier for the buyer. Do not be afraid to search other avenues and negotiate or get a broker to negotiate for you. Why should you stay with your lender if there are better offers out there? Or why should your lender let you go because you got a better rate somewhere’s else, they do want to keep your business so asking for that better rate never hurts.