Renewing your mortgage has a lot of added benefits, such as shortening or extending your loan’s amortization period, receiving the current low-interest rates, or to consolidate your debt. Whatever the case may be, there are a few tips you should know before you begin the mortgage renewal application process.
So, to help get you started, your local mortgage broker, Gert Martens with Dominion Lending Centres, has listed 5 useful tips for renewing your mortgage.
Tip #1: Shop Around
Most homeowners don’t realize that you do not have to stay with your current mortgage broker if you wish to renew your mortgage. Instead, shop around and compare different lenders prices with one another so you who is offering the best rates. It is also worth noting that you will not be charged a fee if you switch brokers, so there is no harm in shopping around and comparing prices.
Tip #2: Review Your Finances
Before you begin the renewal process for a mortgage, review your finances and come up with a financial goal so you are prepared when you go in to speak with a broker. Having a plan and sharing it with your broker can help them understand what exactly you are hoping to achieve with your mortgage.
Tip #3: Good Credit
Your credit score still largely affects the type of rates you will receive on your mortgage renewal, just as it affected your primary mortgage. Therefore, make sure you have good credit before you apply or you risk the chance of your application getting denied.
Tip #4: Pay Down Debt
Lenders will be more inclined to reject your application if you have large amounts of debt. So, before you begin the application process, pay off any high-interest debt you may have. This can also help increase your credit score.
Tip #5: Don’t Accept A Bank’s Posted Rate
A bank’s posted rate may seem like the cheapest option but it is not. Instead, negotiate with a bank first to see how low they are willing to drop their rates. You may even want to consider using a mortgage broker so they can find you the best rates on the market.
For more information on tips for renewing your mortgage or to begin your mortgage application, please contact Gert Martens with Dominion Lending Centres at 780-933-0109.