6 Things You Should Know Before Renewing Your Mortgage
Probably this is your first Mortgage renewal, You are a proud House Owner. For me, my home is my best investment to date and I never ignored any of the decisions related to it, even while picking the curtains, I was very conscious.
It's your mortgage renewal time and you are stressed. According to me, it's completely okay to be stressed but sometimes stress leads to the wrong decisions. I don't want you to regret your decision after 5 years from now. That's why I am here with 7 most important things that you should know or aware of before renewing your mortgage.
Go through each of them and take your time, mortgage renewal can wait for a little but it is very important for you to understand everything before renewing it. These 7 things will help you make a better decision while renewing the mortgage from your desired Mortgage Renewal Service provider.
Get Expert's Consultancy
A mortgage is a financial topic and you might not have a clear knowledge about it. Never hesitate to pay a small amount to an expert consultant. The expert will help you get a clear picture of all the aspects of Mortgage. Ultimately it will help you make better decisions.
Mentioned Rates are not Lowest
Since you are in the renewal phase, you already have a mortgage renewal papers and I'll say those written interest rates aren't the lowest that the company can offer you. Every company loves profit, so they always post a little higher interest rate so that even if the customer bargains a little, their margins remain unaffected. You must take care of this and should openly ask for lower interest rates than mentioned.
Ask for Lower Rates than Last time
If you had a good record of repayments and never missed any of the monthly repayment, the company would be happy to offer you their services and renewal is the best time for you to take advantage of your punctuality. As your Mortgage agent to offer lower interest rates than your previous ones.
It's okay to switch lenders
If you had a horrible experience and you feel like your current lender can create problems for you in the future, mortgage renewal is the best time to switch to a different lender. You might be told that switching the mortgage can cost you more as you have to pay a huge discharge fee but it's always to better have secure and reliable options. Talking about the discharge fee, most of the new lenders will get it waved off. So ask for it in the first place.
Prefer a Broker
Usually, House owners hesitate to bring in a broker to handle all the paperwork. Some house owners have a perception that having a broker will cost them more. Ironically, the Bank of Canada did a study on it and found that a broker can help the house owners get the lowest interest rates. Neither nor any individual, it's the bank of Canada who recommends a broker. But make sure you hire someone knowledgeable and reliable.
Make a little extra prepayment
While renewing the mortgage, there is no limit to making the prepayment. This is an opportunity to save a huge interest code because your monthly premiums will be less. But this is something not every agent will tell you. As mentioned above, always get a Mortgage Specialist Edmonton advice before making any financial decision.
Mortgage renewal is the perfect opportunity to get the best out of it. In order to crack a beneficial deal, it is recommended to analyze each and every point mentioned in the renewal document. Don't ignore the points just because your Mortgage agent narrated them to you. Always sign after reading each and every point mentioned in the document.