18 Jul


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You mortgage is a significant expense. When it comes time to renew, you might not have made time to do the necessary research to negotiate a better offer. Over the course of your mortgage term, you might have made new financial goals for your future, and your payments should reflect that. Before you sign the renewal agreement, there are some steps you should take to ensure you’re getting the best deal.

  1. Get started early

    It’s recommended to shop around for better deals four to six months before your renewal date. Go online and research the rates, prepayment options and other terms offered by different lenders. It’s likely that based on this knowledge, your mortgage provider will be able to offer a competitive rate.

  2. Consider your financial goals

    If you’ve received a raise at work, retired, had a baby or are facing other expenses, your financial plan for the future has likely changed. If you think you’ll be moving within the next few years, you’ll also want to factor that in. All of these factors should be considered when renewing your mortgage agreement.

  3. Check the posted rate

    The posted rate is often the starting rate, and most banks are willing to offer lower discounts to special customers. The only way to access these lower rates is to simply ask using your researched knowledge on competitor pricing. Most banks are prepared to offer you what you’re looking for, however they won’t offer it unless you ask.

  4. Negotiate – or use a mortgage broker

    The interest rate isn’t all you should be negotiating. The rate type and payment schedule, for example, could also save you money. However, if you don’t like to negotiate, a mortgage broker can help. Typically, those who use a mortgage broker pay less and save money. Brokers are able to achieve this by getting many quotes from different banking institutions.

  5. Read the fine print

    After you’ve done all your negotiating, ensure you read the fine print. While you might be saving money on interest, you could be losing out to other costs. Ensure your rate offers various payment options and outlines penalties you might face in the future.

Putting in the research to make sure you’re getting the best offer to suit your financial needs, negotiating for competitive offers, and making a final decision with a comprehensive understanding of all the aspects of your agreement will ensure you are taking the right steps towards a positive financial future.

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