Get the most out of a mortgage renewal with these five important tips:
1. Consider Your Current and Future Needs
Will you soon need to be paying for your child’s post-secondary education? Are you nearing retirement and looking to boost your RRSP investments? Perhaps you’d like to start a new business or free up funds for a home renovation? Whatever the case may be you’ll want to consider your current and future goals if you hope to choose the right product for your needs (more on that below).
2. Do Your Research
Keeping your goals in mind, it’s time to begin researching your various mortgage options. Start by familiarizing yourself with current rates ahead of time, as well as the different products available. You may discover that the current five-year closed-term fixed-rate mortgage rate currently offered by your bank is much higher than other lender rates.
3. DON’T Take the First Offer
Speaking of banks, your current financial institution will likely offer you a renewal. However, it is highly recommended that you DON’T TAKE THE FIRST OFFER. Nearly 65% of all Canadians renew their mortgage with the same lender, under the same terms, solely to avoid the hassle of renegotiating. This can be a costly mistake as lenders seldom offer the best terms and rates available.
4. Partner With a Qualified Mortgage Broker
A qualified mortgage broker is a powerful ally to have when it comes time to renew. Keeping your current and future goals in mind, your broker will negotiate with a variety of lenders on your behalf – working hard to secure the best mortgage product for your needs at an even better rate. A far better alternative than simply signing on the dotted line with your bank, working with a broker can save you time, frustration and thousands of dollars on your mortgage.
5. Don’t Be Afraid to Switch Lenders
While switching lenders can take a little extra time and paperwork, lower rates and a better-suited mortgage product are well worth the wait. Your broker will see to it that all fees associated with switching are covered by the lender – however you may be required to submit a new application, as well as meet the new lender’s outlined criteria. Here again, your broker will walk you through the process, ensuring the transition goes as smoothly as possible.
Is your mortgage renewal date just around the corner? Secure a great rate NOW. Fill out our FREE application form and we’ll help you get started!
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