The Importance of Shopping Around Before You Renew

Kathleen van den Berg
I like to write about the pitfalls of traditional planning. Appreciate the fans.
Personal Finance

Apr 15,2018

Many of us tend to just sign a renewal at the end of our mortgage term, assuming our current lender or financial institution is offering us a good rate. Even though our needs can change, we prefer to stay with what we know, even if that means missing out on valuable opportunities. It’s understandable really. 

 

But what if I told you that you could get a better deal and all you had to do was look. I’m not saying to dive right in, feet first, and take your business elsewhere right now; I’m just saying to shop around before your current mortgage renews. Dip your toes in and test the water. See what others are offering. You’d be surprised at how many lenders will offer a better rate for a new customer, rather than a loyal, long timer. 

 

With a proven track record and a history of holding up your end of the bargain, lenders will be eager to work with you and will compete for your business. Keep in mind however, that a lower rate doesn’t always mean a better deal. Many of us are more attracted to a lower rate, rather than focusing on the plan as a whole. Don’t let those shiny turquoise waters fool you. The water may be nice, but lower rate options can come with hefty fees and hidden rules. 

 

Make sure that you are aware and understand all of the conditions that come along with it before you agree to anything! Remember, the ball is in your court. Spend some time looking around so you are prepared before your current term is up for renewal.      

 

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