Being early is a must when renewing your mortgage as this will get you the best renewal option, and you will be able to take advantage of the alternatives. Being well informed will also help in this situation, and the following mortgage renewal tips will allow you to get the best rate:

• Renegotiate

Your conditions have likely changed since you last obtained your loan, so now would be your chance to renegotiate a better loan term. While a bank may not provide you with what you want, an independent mortgage broker will gladly step in to suggest profitable options that would benefit you in the long run.

• Ask for a lower interest rate

Sounds simple, right? That’s because it is! You may be surprised that financial institutions will try to provide you with a lower rate if you make this request because they want your business and will fight for it. This is especially true if you work with a professional mortgage broker who will negotiate on your behalf to get you a better offer, rate, or term.

• Look into new mortgage features 

Lenders are always offering new mortgage options and products to attract new clients and will extend these features to you, so look into their options to see if something is beneficial for your situation. Lenders may be able to offer you a product that is better than your current situation, so do not hesitate to ask.

• Consider a different rate type

Don’t just sign away your mortgage renewal letter without first considering market trends because you may be better off with a different rate type. If you had a variable-rate mortgage, for example, you may now want a fixed-rate mortgage as economic cycles change and interest rates are going up, so you have to be smart when renewing your mortgage.

• Don’t feel obligated to work with a bank. 

If an existing bank cannot provide you with the best rate or features, contact a mortgage broker because they will take the time to understand your situation and will discuss the mortgage solution that would be best for your short-term and long-term needs. They will help you secure the best mortgage renewal offer and guide you through the process.

• Be proactive

Mark your calendar so that you are aware of your mortgage renewal date. Do this six months in advance so that you have time to re-evaluate your needs, wants, and financial goals, as this will help you negotiate better renewal deals. Learn about interest rate trends and speak to a professional mortgage broker, so you don’t miss out on any opportunities.

• Look into paying your principal amount

Renewing your mortgage may allow you to pay off your mortgage loan amount without paying any penalties. Paying off the principal will save you significant money in interest payments and may also lower your amortization period.

• Refinance or consolidate debt

This would be a perfect time if you need to tap into your home equity to pay off debts or get money for renovations or investment purposes! You wouldn’t face prepayment penalties so you will save a lot of money.

• Don’t fall for the scare tactics of your existing lender

Lenders will try to keep clients for as long as possible and may use scare tactics like higher fees if you decide to move your mortgage loan elsewhere. Don’t fall for this because new lenders can provide you with better rates and terms than what your existing bank may be offering, so do your research and compare.

• Understand why you are switching lenders

Switching lenders when it’s time for your mortgage renewal will require you to go through a new mortgage application process, so be prepared for this step. 

Grover Mortgage Group experts will ensure you do not miss out on any opportunities. We will provide detailed information regarding the renewal process and present you with the best mortgage solutions to suit your needs. If you are looking for a reputable mortgage broker in Oakville, contact us today to see what we can do for you!