In this day and age, who doesn’t want to get the best deal possible and pay the lowest interest rate available? This is particularly true when it comes to a major investment such as a mortgage, where paying just one or two percentage points more interest can add up to a lot of money over the course of the loan. Is it mortgage renewal time in your house? Well, picking up the phone and calling and experienced Kelowna mortgage broker could save you thousands of dollars. Rather than simply renewing your existing mortgage when the term is up, take the time to make sure that you’re getting the best deal possible. A good way to start is with this handy checklist of 5 things to consider when renewing your mortgage:
1. That posted rate you see is not the best rate!
The posted rate you see at your bank is more like a starting point for negotiating. Usually banks will offer you the posted rate, hoping you accept. If you bank does offer you a discounted rate right away, don’t accept. This is a discounted rate from only one lender whereas we work with many lenders so we can offer you more options.
2. Do your research!
It is important to know what is available in the market in terms of rates being offered. Alongside with that it is also important to understand your financial health as that also impacts the rate you can get on your Kelowna mortgage. Knowing this information before going into a renewal will save you time and make for a more pleasant experience.
3. The age-old question: Broker or Bank?
Mortgage brokers in Kelowna can offer a better rate than the bank because they have access to multiple lenders offering multiple products. A bank can only offer you rates and products from one supplier. A recent Bank Of Canada survey confirmed that using a broker does result in a better rate because they can offer quotes from multiple lenders.
4. Loyalty to your bank will not affect your rate!
You have been with the same bank for years, you do everything with them so it only makes sense they give you the best rate possible when it comes to your mortgage renewal, right? WRONG! A Bank Of Canada study found that a new customer will get a better rate than a long-time loyal customer.
5. It is not all about rate – check the terms before you sign!
The lowest rate may not be the best rate for you. Getting a low rate up front may result in extremely high charges if you need to break your mortgage early or if you try to pay extra.
That is why the experienced brokers at Rampone-Marsh Mortgages take the time to understand your situation and current needs as well as what you have planned for the future. Depending on what life-stage you are in, your mortgage may need to be flexible.
Don’t settle for the first mortgage option that comes your way just because it’s where your chequing account is. Choose an experienced, respected and trusted Kelowna mortgage broker and save money. Contact us today for your no obligation, no-cost consultation, and let’s see how we can help you save.