Shopping around for a mortgage renewal can be a daunting task, especially if you’ve been with your current lender for a long time. It’s easy to feel comfortable with the familiar, but it’s important to remember that you have options and that shopping around can potentially save you thousands of dollars in the long run.
Here are some tips for shopping around for a mortgage renewal:
- Start early. Don’t wait until the last minute to start looking for a new mortgage. It’s a good idea to start looking at least three months before your current mortgage term is up. This will give you time to compare rates and negotiate with potential lenders.
- Check out multiple lenders. Don’t just go with the first lender you come across. Look at multiple banks, credit unions and mortgage brokers to find the best rates and terms. Don’t be afraid to negotiate and ask for a better deal.
- Know your credit score. Your credit score plays a big role in the mortgage rates you’re offered. Make sure you know your credit score and take steps to improve it if necessary. This could mean paying off outstanding debts or correcting any errors on your credit report.
- Review the terms and conditions. It’s not just the interest rate you need to consider when shopping around for a mortgage renewal. Look at all the fees associated with the mortgage, including origination fees, closing costs and prepayment penalties. Lowest rate does not equal lowest cost.
- Consider fixed or variable rates. Fixed rates offer stability and predictability, but they may not always be the best option. Variable rates, on the other hand, can fluctuate over time and offer the potential for lower rates, but also come with more risk. Consider your financial situation and determine which option is best for you.
Shopping around for a mortgage renewal can be time consuming, but it’s worth the effort. By comparing rates, terms and conditions from multiple lenders, you can find a mortgage that works best for you and potentially save thousands of dollars in the long run.
Don’t be afraid to negotiate and ask for a better deal – it could pay off in the end.
Cait Holmes is a mortgage broker in the qathet region.
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