Are you planning to renew your mortgage? Well, here are some things that you need to know first before making the move.
1. Shop around before you negotiate – Do your research before you begin negotiations and always ask for a better rate. “Of course, if a borrower asks, they’ll get a better rate,” says Molder. When it comes to researching mortgage rates, Molder says it’s very easy – just go online and check the rates offered by various lending institutions.
Once you know the rates offered for your preferred mortgage term (fixed or variable), then talk to your current provider and ask them to provide a competitive offer. “In all cases,” says Molder, “Unless it’s a crazy low interest rate that has been requested, they will come down. They always come down. There’s always room for renegotiation.” Source: Global News
2. Look for a lower interest rate – When renewing a mortgage, make sure you look for a lower interest rate as well as an overall mortgage deal with more benefits. Remember, saving even a few hundred dollars extra every year adds up over the life of your mortgage. Source: My Money Help
3. You are not obliged to renew into the same kind of mortgage, nor are you obliged to stay with the same bank – When your mortgage term is up, all bets are off. Nobody owns you. Sometimes people feel loyal to a lender since the lender was good enough to lend you the money, you owe them your business. In reality, it’s a business transaction like any other. If the lender isn’t giving you the best rate, product, features and service, you have every right to take your business elsewhere. Of course, shopping around for the best alternative can be confusing and time consuming, so go to a mortgage expert to do all the legwork, comparisons and negotiation for free. Source: Rew