Buying a home is most likely the biggest purchase you will ever have to make. This expense means that your monthly payments towards your Surrey mortgage are probably your most costly bill. To help make your payments more manageable, renewing your mortgage could make that happen. As your mortgage broker in Surrey, we have come up with tips for renewing your mortgage.
- Shop Early
Looking for renewal rates right when your mortgage is up is too late to shop the market. Go around to different lenders between 4 to 6 months before your renewal period. This is what lenders claim to be the earliest they will guarantee cheaper rates. Shopping early also gives you time to compare different prices with different lenders.
- Shop Around
When looking for a mortgage renewal in Surrey, it is important to not settle with the first lender you speak to. Shop around to compare the different offers available. This will give you more leverage to negotiate better deals in a competitive market.
- Never Settle
Never settle for the first offer given to you. Whether you are looking to refinance or get a second mortgage, always make sure you ask for a lower price than what the lender is offering. Financial institutions will work with you to come up with a more reasonable price, but they will not mention a cheaper option if you do not bring it up. You’ll never know if they’ll drop the price unless you ask!
- Negotiate Deals
Most buyers tend to only focus on the interest rate of the loan they are acquiring, however, there are other factors involved that can ensure cheaper payments. This includes the life term of your loan, also known as the amortization period. The type of loan you have, whether it is a fixed rate mortgage or an adjustable rate mortgage, can also determine lower payments. Negotiate better deals with these factors in mind, and try not to only focus on the interest rate.
- Use a Broker
If you do not feel comfortable going around to different lenders and comparing prices, use a broker. A mortgage broker will do all the work for you and will consult with other lenders on your behalf so you get the best deals out there.
As your local Surrey mortgage broker, our team will always put you first. Contact us for more tips on how to renew your mortgage, or to get started on your application today. The Silverman Mortgage Group can be reached at 604-532-3824.