Your mortgage payment is, most likely, the biggest expense that is cutting into your budget every month. You aren’t alone; this is the case for the majority of Canadians. When it comes time to renew your mortgage, you can save money by shopping around for a better rate.
However, more than ¼ of Canadians automatically renew their mortgage without considering what better options might be available. If mortgage renewal time is approaching for you, use these six tips to help you find the best rate.
- Start shopping for a new mortgage well in advance of your mortgage renewal deadline. Ideally, you should begin this process about 4 – 6 months in advance. This time frame is recommended because it is the maximum amount of time that lenders will guarantee a rate. By sticking with this mortgage renewal time frame, you have a guaranteed rate in the event that rates increase. If rates fall, you still have the option to renegotiate for a better rate.
- Do some research. Don’t limit yourself to the rates that your bank is offering. Look around and see what rates are being offered by mortgage brokers. You may be surprised at the variation in rates from one lender to another; on any given day, a mortgage rate can vary as much as 1.5% between different lenders. A mortgage broker is the perfect resource to help you find the best interest rate available.
- Ask for a better rate. Don’t assume that a posted mortgage rate is the bottom line; you can always negotiate to get a better rate. Your mortgage broker knows all the ins and outs of finding the best possible rate, and they can help you with researching and investigating the best deals that are currently being offered.
- Don’t focus exclusively on the interest rate. There are other features to the mortgage that you should consider, particularly if you are being offered similar rates by a variety of lenders. Pay attention to issues like whether the rate is fixed or variable, the amortization period, and whether the payment schedule is flexible. These factors can significantly impact your experience of the mortgage process, and all of these factors can be negotiated, as well. Your mortgage broker can guide you in choosing which loan type fits your needs best when several loans have similar interest rates.
- Don’t be afraid to leave your current lender for a new one. If you switch lenders when it is time to renew your mortgage, there is no penalty. You may be able to secure a better rate and better mortgage features, which could save you a lot of money every month.
- Mortgage broker. If you don’t want to mess with looking for a better rate or negotiating with lenders, consider using a mortgage broker. Mortgage brokers receive a commission from the lender, so they usually don’t charge you a fee. They can find the best rate for you, and you can end up saving thousands of dollars in interest.
Professional Mortgage Broker for Mortgage Renewal
If your mortgage renewal time is approaching, contact the Mortgage Ladies at 905-789-8198. We offer mortgage brokering services, and we can help you to find the ideal mortgage for your situation, all while saving you a bundle of cash.
Tell us your renewal date and we will contact you 120 days prior so you can get best rate. Don’t just wait for your mortgage to renew; call us and keep more in your pocket every month.