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Ten tips to get the best rate at renewal.

1.      Do not leave it until the last minute! Shop around early! Many lenders will send out renewal notices three weeks before the renewal date and does not give you enough time to shop around. Typically, you can shop around 120 days prior to your renewal date. i.e., Sept 29, 2020, you can start on May 29, 2020. 

2.      Must have a good credit rating! When is the last time you checked your credit? You must have good credit. Make sure you pay your credit cards and debts on time. Even if it is just $1 owing… you MUST pay it on time. It does not matter about the amount, but it is the action of paying ON TIME. 

3.      Must have a job! You must have a job that qualifies for your mortgage. 

4.      Be Educated when making a decision! The lowest rate may not be the best product for you! There are many products being advertised out there. When something is too good to be true, be aware. Many restrictive products out there.

5.      Equity in your homes gets you a better rate! This is also known: Equity or Loan to Value (LTV). Say the value of your home is $500,000. If your mortgage is at $300k, your LTV is at 300/500=60%. If your LTV or mortgage to value is under 65%, you can work with wholesale mortgage companies and get even better rates.

6.      Consider working with Wholesale mortgage companies! Wholesale mortgage companies are also known as Monolines or CFLs (Canadian Financial Lending). They typically do not deal with the general public and only deal directly with mortgage agents. They are direct competitors with the big five banks and offer “more” for clients.

7.      Work with a professional mortgage shopper! Also known as a mortgage agent or mortgage broker. I have access to over 25 different lenders. I shop around for you and find you the best deals. My services are FREE as the lenders pay me.

8.      Do not be scared to switch lenders!  This is how you can save money! It takes a bit of work, but it is worth it! I know it is easy to stay with the same lender, but you can be leaving thousands and thousands of dollars on the table. 

9.      Understand your costs! Typically, the new lender will pick up the costs for legal and appraisal and discharge fees. Some lenders will not. So, ask and be educated.

10.   Trust your instinct! Work with people you trust. Listen to your gut feelings.  

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