By Riki Unrau

For most of us, our mortgage payment is the largest expense we encounter each month. The ultimate goal of every homeowner is to be mortgage free as soon as possible. However, until that blissful day all we can do is try to get the lowest payment with the best rate.

Here are some tips to help you obtain that great rate when you go to re-new your mortgage.

Start searching early

About three to six months before your mortgage comes up for renewal is the best time to start your search. This is typically how long we can hold a certain rate for you. You can either do this by contacting as many lenders as you can and getting their rates or, to save time and energy, you can contact a mortgage broker and he/she will do all of the work for you. Including contacting lenders you do not have access to. However, you choose to go about it do not dilly dally as the longer you wait the more likely you are to just re-sign with your current lender at whatever rate they have offered you regardless of how good it is.

Posted rates are not your friend

If I am able to impart one shred of knowledge upon you it would be to never accept your bank’s posted rate. It would be like going to buy a car and paying sticker price. And, like negotiating a better rate on a car, you can do the same on your mortgage rate. However, your bank will not offer you the lowest rate right off the bat so you need to ask for it. Or, if you don’t feel that your loyalty to your lender deserves negotiating for a good deal then get your mortgage broker on it. He/she will dig around until they find you the best rate and then arrange the switch from your current lender.

Interest isn’t everything

When you negotiate for a better rate keep in mind that the interest rate is not the only thing to consider. Things like amortization, fixed versus variable and the flexibility of your payment schedule can all drastically alter the amount of your payment. You need to be aware of all of the options available to you so that you can make an informed decision.

Ask questions

Never be afraid to ask questions to your mortgage broker or advisor. There are no dumb questions and we are here to make sure you feel as comfortable with what you are signing as possible. If you are unsure of anything then speak up…You’ll be glad you did.

– Riki Unrau is a Mortgage Broker with Invis Williams and Associates, located at 828C Baker Street, Cranbrook, BC V1C 1A2 – 250-919-6402. For more try: www.facebook.com/rikiunraumortgages

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