Getting The Best Deal for Your Mortgage Renewal
posted in Mortgage News
There can be many reasons for wanting (or needing) to renew your mortgage, from changes in your financial circumstances, to being dissatisfied with your existing lender, but whatever your reason, renewing can be a fantastic opportunity to make some much needed changes.
Read on for more advice on how to get the best deal for your mortgage renewal:
Do your research
Negotiating a lower rate for your mortgage is only ever possible if you know what other financial institutions are currently offering, and it’s important to remember that the rates that are posted, are not typically the lowest available.
Is what you’re being offered now higher or lower? Working with a mortgage broker can help you separate the lenders and determine what is the best deal for you, right now.
Be aware of the fine print
While it might seem counterintuitive, the lowest available rate is not always the best option, and there may be penalties associated with selecting such a rate.
By choosing the lowest rate, you might be blowing your chance of making extra payments, or even risk incurring a significant penalty for paying your mortgage early. Take the time to familiarize yourself with the fine print of your mortgage terms before accepting a renewal deal, and as always, talk with your mortgage broker if you’re still unsure.
Watch out for amortization
Getting a lower mortgage rate when you renew, but keeping your monthly payments the same, might be advantageous, as it can reduce overall amortization and help you pay your mortgage off sooner. Making a dent in your amortization is always worthwhile, and if you have extra funds available when you renew, why not put them towards your principal balance?
Tap into your home equity
Home equity could help you fund any number of projects and goals you’ve been meaning to work towards, from home renovations and debt consolidation, to funding further education, and if you want to take out some of your home equity, you’ll need to consult with your financial institution directly.
Seek help from a mortgage broker
As mentioned in several of the points above, working with a reputable mortgage broker who has experience in your locality, can be helpful in several ways. Firstly, they can give you up-to-date advice and guidance that can prove invaluable when it comes to renewing your mortgage, and even get you a better deal than you might have had access to when searching independently. Swapping lenders can mean paying certain service fees, but with a mortgage brokers help, you can absorb those costs into the new mortgage or even have the lender pay them on your behalf.
If it’s the right time for you to renew your mortgage, be sure to follow the advice given above to get the very best deal.