Are you looking to get a mortgage? There are a ton of things you'll want to consider before signing those papers, one of which is how and when to negotiate the best possible rate. There is typically room for negotiation regarding the fees, and you only want to pay what you need to. Buying a home is a huge investment, so be conscious of exactly how much you're spending and why.
You can negotiate your mortgage when you're getting a new mortgage, when you're renewing, or during the term of your existing mortgage. Therefore, this can also be something you're thinking about. We've rounded up some things to keep in mind to help you get the possible mortgage rate. Good luck out there!
Know Your Worth
A big part of mortgage negotiation is knowing what you want and deserve. Do your research and get a feel for what you can qualify for and how attractive you look as an applicant. If you have a large downpayment, a great credit score, low debts, and a stable income, you will have a ton of negotiating power, and you should be aware of that.
When looking for the best possible rate, you'll need to have many conversations with different lenders and types of lenders. Not only that, but you'll want to make it clear to the lenders that you are shopping around. Remember that lenders want you to choose them, especially if you've got a strong application, so they're more likely to offer deals and discounts if they know you will happily walk if you don't like what you hear.
Give Yourself Plenty of Time
Similarly, you want to give yourself a ton of time to switch lenders. If your mortgage is coming up for renewal in a few months, don't wait for your lender to send you notice; start shopping around up to three months prior. This will give you time to try and negotiate a better rate with your current lender and seek a new lender if you aren't happy with the results of that notification. If you don't give yourself enough time, you may opt to stay with your current lender and fee structure for convenience.
Asking for a Better Deal
Now, this may seem obvious, but you need to ask! Lenders aren't going to offer you their best possible deal without you asking. You can always ask your current lender and any prospective lenders for a better rate, the worst they can say is no. If you don't get the answer you're looking for, it's an incentive to start looking elsewhere for a rate that better suits you.
Work with a Broker
Working with a broker can be helpful when it comes to securing low mortgage rates. This way, you're not the one having the conversations during the "shopping around" phase. They can help you understand what you qualify for when it's in your best interest to switch lenders or choose a specific one, and if and when it's an excellent time to consider a re-negotiation. If you're intimidated by negotiations, or you don't feel informed/equipped enough, there are professionals who can do that for you!
Watch the Rates
You always want to keep your eye on Canadian interest rates. If there are big shifts in rates, you may wish to adjust the terms of your mortgage. This is a good thing to discuss with your lender or broker if you notice any significant fluctuations.