8 Things You Can Do To Get The Best Renewal
With 47 per cent of homeowners scheduled to renew their mortgages this year,
2018 is a year of change for lots of Canadians.
Here are the top 8 things you can do to get the best renewal:
1. Pull out your mortgage renewal now, and start early. When you are proactive
instead of reactive you can see if there is anything on your credit score or
lifestyle that we can modify to ensure you are positioned for the best renewal.
You are only in a position to do this when you start early- in the last year of
your mortgage you will have the most amount of options available. For example,
there can be an inaccuracy in your credit report or you may be considering an
income/job change that would impact your options. We can look at timing
accordingly for you.
2. Do not just sign the renewal offered. Lenders can change the terms of your
mortgage, and the renewal you are signing can cost you up to four per cent of
your equity if you are with the wrong lender for your current life stage.
3. Most people think the best rate is the best renewal – WRONG. The terms are
most important and with all terms moving or selling is the only reason most
people think they would ever break a mortgage- THIS is simply not the case, a
change in the interest rate market, divorce, health, job change, investment
opportunity and many other reasons would contribute to a future modification
being beneficial for a consumer.
4. Take into consideration lender history. The lender can have a higher prime
then anyone because they know the cost to leave outweighs staying the course.
The lenders are very smart with their calculated risks- and this is not
something they have an obligation to disclose.
5. Remember your lender has a bias – their job is to handcuff you so they can
make as much profit off you as possible- don’t be a victim.
6. Do not shop each lender on your own, it takes points off of your credit
score. All lenders have different rates based on your score and you want to
position yourself to get the best. By using a mortgage professional, they can
shop multiple lenders protecting your credit using only one application, while
the rate variation can be on average a half a percent!
7. Don’t get sucked into the online rate shopping- any monkey can post a rate
online and you can drive yourself crazy looking at something that does not
exists. In today’s complex mortgage market there are significantly different
rates based on – insured mortgage vs uninsured mortgage, switch vs refinance,
purchase or renewal, principal residence vs rental, salary or self-employed, 600
credit score or 700 credit score, amortization of 20 years to 30 years, type of
property condo vs house, and leased land or freehold. The variations can mean a
difference in thousands of dollars. Like diagnosing a medical condition, you
can’t go online, you do have to put in the appropriate application and
supporting documents to verify which options are available to you that will
result in the lowest cost in borrowing.
8. Remember your mortgage is the largest debt and investment most of us have,
when you contact an independent mortgage professional, we are going to invest
all the work and expertise and advise you in your best interest regardless if we
get your business. We may after our review advise you to stick with your
existing lender, or make another recommendation for you. We are only here to
enhance your finances and save you money, and there is no cost for our service.
Call Shoren at 416-218-0080. You will be surprisingly pleased!