Are you considering a mortgage renewal? Terry and the team at North East want you to know a few things about finding the best mortgage renewal rates before you do. Renewing your current agreement early with your bank or perhaps another institution offering more favourable terms (more on that soon!) is a great way to lock in a low rate on an extension of your loan, freeing up your money to invest in other areas like education, starting a business, or undertaking major renovations, and is even a good way to buy some extra time while you build savings; however, there is a major downside that could end up costing you thousands of dollars or more.
North East Mortgages is a specialized agency in Montreal for the surrounding area and all of Quebec, and one of our premier services is finding the absolute best rates on mortgage renewals in the local area. We take into account all of your financial factors and aspirations, as well as the current realities of your mortgage before we even begin shopping for an agreement for you. That’s how we hone our search down to exactly the best terms for you, not the best terms for the banks. If renewing early will work out for you, we will find out exactly how.
The good news is that the odds are in your favour. Due to many different factors, the pool of eligible borrowers is shrinking, forcing lenders to submit to more favourable terms for borrowers in order to compete. The downside is recent surveys have shown most Canadians simply sign on the dotted line immediately with their current bank, costing them thousands of dollars extra over the life of the loan. The team at North East won’t let that happen.
Here’s more about how we find you the best mortgage renewal possible on the market and how it benefits you.
The best way to set up a mortgage renewal
Before beginning the process, it’s important that all of our clients understand this important fact of business: your bank is looking out for its best interest, not yours. All agreements, posted rates, and information given to you by them (unless required by law) is without a doubt in their favour. The good news is North East is on your side. Since we only succeed if you succeed, our best interest is tied directly to yours. If you are renewing your mortgage, the market is on your side, and we can help you unlock its potential and save you thousands of dollars. Here are some actionable tips for setting your renewal up that you can get to work on now:
Mortgage renewal tips
A renewal can serve a lot of benefits for you if you do it right. A few benefits right off the bat of getting a good rate could be:
- Locking up loan terms under market value before they go up
- Freeing up cash for investing
- Taking on some good debt at a good rate
- Getting this important step out of the way before you are forced to at a high rate
- Granting you access to an amount of capital much larger than you could get elsewhere
That being said, you need to do it right. If you will still owe money after your term is up, then you’ve got to get to work. An early renewal might cost you a small fee, but the benefits of getting good terms early are hard to pass up. Here are some tips to make sure you get the terms most favourable to you.
- Start shopping early – we recommend at least 3 months in advance so you are prepared. Things take time and rates are volatile. The sooner you start, the more prepared you’ll be to lock in a great rate when it comes up.
- Use reputable professionals – the only way to ensure that you’re getting the best deal is using a professional agency you can trust.
- NEVER accept the posted rate – the posted rate is the initial rate the bank provides as a means of bartering with you. It’s meant to frame the business relationship and set the bar. NEVER accept it without consulting with professionals. Even a single percentage point or a fraction of one can amount to tens of thousands in savings.
- Consider your future financial goals – create an outline including financial goals and ask yourself if a renewal lines up. Might you move in a few years? Is a child coming of age and in need of an education. All of these aspects need to be factored in.
Will bad credit affect my mortgage renewal?
Your credit score is certainly a factor in the types of terms you will be offered, but it’s important not to get discouraged. Just because you have bad credit does not mean in any way that you can’t get beneficial terms on a mortgage renewal. As we said before, there are many factors that go into getting good terms for you, and by using the right renewal agents, you will still be in good position to walk away happy. Bad credit is an obstacle on the road but in no way a dead end.
Don’t renew a mortgage until you’ve spoken to the professionals at North East Real Estate & Mortgage Agency. We can help put your mortgage to work for you.