Mortgage renewal woes?

Here are 6 tips on negotiating a better renewal rate:

1. Don't just accept the first renewal offer you receive from your bank.

Your first offer is just that. It may come as a 'best client' rate, but they're likely hoping you take it and don't ask for a lower rate. So, ask.

Depending on their next offer, you'll have a clearer idea of where you stand and if you have room to negotiate further.

2. Shopping around gives you options.

You may feel uncomfortable about looking around for a better rate if you're used to sticking with your bank. But it'll be worth it if you end up with a lower mortgage payment than you thought.

There's rate shopping, and then there's 'real' rate shopping. Checking out other bank websites or even rate comparison sites may give you a wrong impression of what rate you can get.

Instead, an expert True North Mortgage can quickly shop from a range of lenders to determine your best rate based on your specific details, including having to qualify through the federal mortgage stress test rate.

If you find a better 'real' offer than your bank, you can always take it back to them to see if they'll budge. But, you may find that the lower rate is worth a move to switch lenders.

3. Using a mortgage broker service can mean less impact on your credit score.

Calling up a bunch of lenders to ask for a rate quote could ding your credit score — a result of several mortgage checks on your file — and could impact any rate offer you receive.

Instead, your expert broker can make those rate inquiries for you, counting as one mortgage credit check.

4. Get a volume discounted rate.

Independent brokers in your neighbourhood may not incur enough volume to impact your rate offer.

True North Mortgage is a large brokerage, and our salaried brokers do huge volumes based on strong relationships with many lenders.

The rate discount we pass along could save you thousands of dollars over your term.

5. Switching to another lender or product may save you beyond your rate.

It's important to consider a lower renewal rate in light of ensuring you have the right product fit to go with it:

• Thinking of moving soon? The lowest open variable mortgage rate in Canada could save you money and stress vs. locking into a closed term
• Need funds to consolidate debt? Get the right lender with flexible refinance terms and competitive rates
• What does your mortgage future hold? A lender with lower pre-payment penalties than big banks could cost hundreds less if you suddenly need to break your term
• Want to make extra mortgage payments? Flexible pre-payment privileges and options, like free payment frequency changes, help make it fee- and stress-free
• Should you stick with a 5-year rate or take a 3-year one? Get advice on choosing the term and rate that best fits your needs

Use your renewal period to expose the right choices available to you at the lowest renewal rate possible.

6. Don't wait too long to make your decision.

Are you ignoring your renewal offer, hoping rates will bump down? Running out of time will not help you negotiate, and you risk auto-renewing at a much higher rate.

Some lenders will send your renewal letter months in advance, others only a few weeks (they're legally obligated to send something at least 21 days before your expiry date).

Make sure you have enough time to research your options — a True North broker can start your process 120 days in advance. You can also get a friendly renewal reminder if 'busy' is your main state of being.

And 1 mortgage renewal myth, dispelled.

Many homeowners believe that switching lenders at renewal is too stressful and costly. So they end up paying more to renew with their bank because they don't want the hassle.

If you go it alone for a switch, you are at the mercy of both lenders' mortgage reps and how quickly and effectively they communicate and respond to facilitate the switch. One of True North's recent clients shared that they had tried to switch (on their own) to a lower rate, but the bank they switched to took over 3 months to finalize the details! Yikes.

Instead, place your switch in the hands of a highly trained broker, like a True North expert. They'll take care of all the details from beginning to end for a smooth process.

And the switching costs? It's a myth that fees can outstrip any savings. Many lenders cover some fees or don't charge as much as you think. Get your expert broker to run the numbers for your actual switch savings.

Sure, cross your fingers — but also get expert help.

Renewals right now are stressful. As we (impatiently) wait for rates to continue their decline, it's essential to get your best rate and product to save more.

At True North, we can provide personalized advice and access to better rates and solutions, whether your details are straightforward or more complex.

We also have the most 5-star reviews in the industry, which tell the story of how we've helped thousands of homeowners save thousands of dollars — and you could be next.

We make using our free mortgage service convenient for your renewal options. Anywhere in Canada, apply with us online, over the phone or email, chat up Morgan our chatbot, visit a store, or have a mobile broker come to you.