Tips for Finding the Best Ottawa Mortgages Before It’s Time for Renewal
Often, when a mortgage term is up, many Canadians automatically renew instead of looking for a better deal. Ottawa mortgages are no different, as renewal often seems like an easier option.
If your financial situation has changed, though, you might want to look at your options. You could have a higher income, or you may now live in a dual-income household. On the other hand, you might have greater financial responsibilities, like children or care costs for other family members.
There is a good chance that your mortgage might not be the best fit for your current situation. So instead of automatically renewing your mortgage, consider shopping around for the best deal. You could reduce your monthly mortgage payments (helpful if you have other major expenses) or you could pay down your mortgage faster by freeing up more capital.
If you’re not sure if you should stick with your current lender or find a better deal, contact a mortgage broker for advice on the best options available for Ottawa mortgages that will suit your unique financial situation.
How Brokers Help You
A mortgage broker will go over different mortgage options to find the one best suited to your needs. Mortgage brokers use your budget to plan out different mortgage products and provide you with choices.
While you can ask for the best rate available on the market, it is often wise to also look over the penalties from different lenders in the event that you have to move and sell your home before your mortgage term is finished.
Life is unpredictable and circumstances can arise that will make you have to sell your home and relocate. That’s why it’s good to be prepared with a manageable mortgage and avoid the high costs of breaking a mortgage, especially if you have a collateral-charge mortgage.
These mortgages are often non-transferable, so if you need to move before your term is up, you will probably have to pay off your mortgage before you can take out a new one.
So, before renewing your mortgage, consider these tips for finding the best mortgage available for you.
Start Shopping Early
If you start shopping around and comparing different mortgage options four to six months before your mortgage term is finished, then you should have no trouble finding the best mortgage for you and securing it. Lenders will often offer a guaranteed discounted rate, but only for a specific period of time.
If you secure this rate in time, then you won’t have to worry about rates rising. And if the rates go down during this time, then you can renegotiate your mortgage for a lower rate.
Look at the mortgage rates of various financial institutions to see if they are better than your current mortgage. For help with comparing different options from various lenders, consult with a mortgage broker. Ottawa mortgage brokers can certainly find the best deals for you amongst the various lenders in the city.
If you are happy with your current mortgage lender because they have the best advice, policies, and mortgage features, ask them if they will match a competitor’s lower rate, rate type (fixed or variable), and amortization period. Often, they will want to keep you on as a loyal customer and be willing to negotiate. Plus, it never hurts to ask!
If you’re uncomfortable with asking, or your current lender won’t negotiate, a mortgage broker can do it for you. They’ll get comparisons with many different lenders, too.
People tend to pay less on their mortgages when they go through a mortgage broker. They pay less on interest and often have less restrictive mortgages. Mortgage brokers work for you to find the best mortgage suited to your situation and to make sure you are prepared for life’s unexpected turns in the road.
So, remember to give yourself (and your mortgage broker) ample time to compare mortgages before your current mortgage term is up. The more time you have to compare and negotiate mortgage products, the more likely you and your mortgage broker will find the best mortgage for you amongst the many Ottawa mortgages available on the market.