Posted 7.29.13 @ 10:15
When it comes to mortgage loan renewals, most Canadians are getting the sharp end of the stick. A recent RBC study showed that most Canadians aren’t able to get a good deal when they try to renew – if anything, they actually end up paying more. While we’re raised to believe that loyalty pays, you may be surprised at how much work you’re going to have to do to make sure you’re getting the best rate. Remember: always get preapproved for your mortgage BEFORE you start looking at Oakville luxury real estate for sale.
The More Services the Better, Right?
When it comes to getting a good rate, you’d think that bundling all of your services or getting all your financing done from one source would get you something. Just saving on a percent of interest can help you save thousands if not tens of thousands of dollars over the life of your loan. But what you’re not paying is seen as a big loss for your lender – they know you’re already doing business with them, and you’re less likely to jump.
The truth is that new customers tend to get the best deals from a lender. Lenders need a steady stream of new customers flowing in to keep things in the black. They’re more willing to give you a better deal if you’re new than if you’ve been banking with them for 20 years. After all, they already have your business and since most of us think we’re getting a good deal anyway, they just don’t have an incentive!
Watch Out for “Discounts”
Many people are finding that when it comes time to renew their mortgage, they’re not able to figure out what it is they’re actually getting. Great customer service is important, but so are features, better prices and rates that reflect the kind of borrower you are. Some people even go as far as finding a mortgage broker to work with to see if they can find a better rate. When it comes to your mortgage, lender loyalty may not get you the best deal. Don’t be afraid to explore your options to find out which one will be right for you.
Do Your Research
The first thing you’ll want to do is start researching! Look around at different banks and see what the prime rate is. The prime rate is the base interest rate established by the Bank of Canada. Prime rates float up and down all the time, and unless you’re a super-qualified buyer you’re probably going to pay a little more than the prime.
One of the great things about the internet is that you can be your own mortgage broker – or at least do your initial research on your own. If you do end up really thinking about switching lenders, make sure you work with an expert that knows which lenders are worth your money and which ones you should avoid. But when you need to find the right Oakville homes for sale, give us a call! We’ll be able to help you find the home that’s right for you.