Negotiate your mortgage and save thousands!

Negotiate your mortgage every quarter. It’s a great way to save money on monthly payments and overall interest costs. Here’s why and how:

Why Negotiate?

• Potential Savings: Even a small decrease in your interest rate can add up to significant savings over the life of your loan.
• Improved Cash Flow: Lower monthly payments can free up your budget for other financial goals.
• Faster Payoff: Reducing your interest rate can help you repay your mortgage sooner.

How to negotiate your mortgage

1. Research the market by looking at the rates of other financial institutions (Tip – use a rate comparison website such as Canstar mortgage rate comparison).
2. If your current rate is not competitive, call your bank and ask them to match or beat rates offered by competing institutions. (This should be your first step, and it’s easier to stick with your current mortgage/institution if they are willing to provide a better rate).
   If your financial institution is unwilling to match the competition’s rates, you need to consider refinancing your mortgage with a different lender. Contact the competing institution offering the lowest rate and apply to refinance your mortgage (Tip – Ensure to look at all fixed and variable costs associated with the loan. Often ongoing fees and variable rates after fixed loan periods cost you more over the loan’s lifetime, even with the lower upfront interest rates).
3. If you are transferring from one financial institution to another, a fee is often associated with closing your previous mortgage. Your new mortgage will unlikely have signup fees as the lender is keen on your business.