Mortgage payment in Canada is considered by many as the biggest monthly expenditure. Before you start making payment of a mortgage, it is important first to put into consideration the below Research shows that approximately 27% of most households in Canada most often renew their mortgages automatically once their terms expire rather than finding a deal that is better.
You can arrive at a better mortgage deal by shopping for the best mortgage provider for a period of six months before the renewal date is up. This tip allows you to find lenders who will offer the longest mortgage at a discounted rate. According to Vancouver?s Robert McLister of the Canadian Mortgage Trends.com, current lenders? rates normally rise while your guaranteed rate falls back on and incase they drop, you are supposed to renegotiate a lower rate.
It is advisable to find out what other lenders have in the market before you embark on a negotiation for a better and lower rate by your mortgage provider. You can do this by consulting various mortgage experts or you can simply visit plenty of websites posting current Canadian Mortgage tips on various rates from all banks in Canada. For instance canadamortgage.com is good when it comes to comparison of rates from various banks.
If you find it better to continue with your current mortgage provider because you consider your bank to offer the best mortgage features, you can request the bank to match a competitor?s lower rate. ? If you don?t come right out and ask for a better rate, you won?t get one,? These are words of Alan Silverstein, a real estate lawyer Based in Toronto who also wrote the book ?The perfect Mortgage : Cutting the Cost of Home Ownership(Stoddart, 1995). According to this Canadian Mortgage tip providers may be very much willing to reduce your mortgage rate over other accounts and investments like the RRSP.
Do not just concentrate on interest rates only. There are other available options you can fixate on such as the period of amortization, the rate type (either fixed or variable) and the how flexible the payment schedule is. These options are very crucial when it comes to lowering your mortgage costs. The best time to shop for a prospective lender is before your mortgage renewal is up. There is no penalty at the end of your mortgage term and therefore, it is easy to transfer your mortgage to the lender you feel suitable .This is because initially your bank may have a great deal in terms of rates but upon renewal there could be more competitive rates out there.