3 top-notch tips to get the best deal on a mortgage renewal

August 4, 2014

Mortgage interest fees can be hefty. The next time your mortgage comes up for renewal, these three top-notch tips could help you get the best deal in town and save thousands.
Did you just get a mortgage renewal letter? If you act fast, you could get an even better deal this time around. But once you get the letter you won’t have much time to find a mortgage loan that best meets your needs—so hop to it! Shopping around could help you save big.

3 top-notch tips to get the best deal on a mortgage renewal

Tips that could save you big

When it comes to mortgage renewal, the best strategy is to never accept the automatic renewal sent out by your lender. You can most certainly get a lower rate and better conditions. Here are some tips on how to proceed:

Tip #1: Always compare market interest rates

There are several reputable websites that can provide you with up-to-date overviews of existing rates, and which allow you to see who is offering what mortgage rate.

Tip #2: Get in touch with different financial institutions

Don’t just rely on the rates you see on the Internet or in newspapers. A simple phone conversation could help bring your potential interest rate down, especially if the institution is willing to work with you.

Tip #3: Call your lender and make the most of your findings

Don't be afraid to call your lender and tell him or her about the best interest rate that you could get elsewhere.You might be surprised to see just how efficient this strategy can be because, remember, your lender is trying to sell you a product.

Is changing lenders worth the cost?

During your mortgage renewal research, another financial institution might make you a very tempting offer. Before jumping in with both feet, take the time to assess all the fees the new deal might entail. There could be:

  • Mortgage discharge fees in the case of a collateral mortgage and all debts covered by this mortgage, including lines of credit, credit cards, and car loans.
  • Registration costs for the new mortgage and transfer fees.
  • Property assessment costs.
  • Notary or lawyer’s fees.
  • Other administrative charges.

Sometimes you can negotiate for the new lender to pay for the fees incurred by making the switch. Be sure you ask about it and that you calculate everything properly.

No time to shop?

Ideally, you should start shopping for your mortgage long before you receive the mortgage renewal forms. That way, you’ll have sufficient time to think without the pressure of a deadline. Keep in mind that the majority of lenders send their renewal notices at the last minute. If you don’t have the time or the desire to shop around for your mortgage renewal, you can call on the services of a mortgage broker. At least you’ll be able to compare various products without the obligation to commit to anything. But before anything else, don’t forget to check on the terms offered by your current lender; after all, your own financial institution may very well have the best solution.

Take stock

Your mortgage renewal is the perfect moment to take stock of your whole financial situation. This could be a great opportunity to assess your home renovation goals or to consolidate your other loans.

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