When it’s time to renew your mortgage, many homeowners simply sign the papers. However, if you want to save yourself some money there are a few easy things you can do to get a better mortgage rate and terms.

1. Research mortgage options

Investing a little time and researching your mortgage options may uncover a better option. Simply look online at what the current mortgage rates and terms are and compare them to what your lender is offering you.

2. Know your future plans

Consider any life changes that you anticipate in the next few years. Will you be relocating? Do you have a child going to college that you’ll need to help with the cost? Are you looking to move to a different home? Understanding what potential changes you’ll be facing will help you determine the best mortgage for you.

3. Request a lower rate

You don’t have to accept the rate that you are being offered. Ask your lender if they can do better. You may qualify for a discount. Let your lender know that you’ve done some research and are considering switching your loan somewhere else for a lower rate. This can be a powerful negotiating tool.

4. Ask about limiting conditions

Find out about the terms of the mortgages being offered and see if any of the conditions raise your concerns. Some of these limiting conditions for lower rates include:

  • Prepayment penalties

  • No rate reduction

  • Extra charges like appraisal and legal costs

  • Is it a lower rate, or are you being offered cash to make the rate look lower?

5. Look at new mortgage products

Lenders often come out with new mortgage products, offers and promotions. Look into whether your current lender has any that fit what you want in a mortgage. Some new products may have better pre-payment options, amortization periods and cash-back programs.

6. Talk to a broker

Talking to a mortgage broker can save you a lot of time when it comes to mortgage renewal. Brokers have access to many different mortgage options and will be able to quickly find you the best options for your budget and situation.

7. Refinance

When it comes time to renew, you may want to consider a refinance instead. Refinancing your mortgage means you can switch to a different lender. It also means you may be able to assess some of the equity you have in your home. This money can be used for several things such as a renovation project or to consolidate your debt.

8. Rate hold

If a lender offers you a great rate, ask them to hold it for you while you decide. Doing this can protect you against an interest rate increase for up to 120 days. It means you won’t miss out on a good deal.

9. Start early

Give yourself enough time to research and consider your options. You usually want to start looking into it several months in advance.

If you are interested in learning more about your mortgage renewal options in Toronto, call Northwood Mortgage™ at 888-492-3690 or contact us here.