Use a Mortgage Broker To Get The Lowest Rates For a Mortgage Renewal Alberta

by Samantha Stewart Canadian writer

Home owners who have a mortgage on their home will most likely renew their mortgage at least four or five times during the life of their mortgage. Since many of the people have their original mortgage with their bank, their first option may be to just continue on with their bank, and renew their mortgage with them. They may do this perhaps because it is the easiest option for them. However, what some home owners do not realize is that these banks are not necessarily offering their clients the best rate out there. They may just offer them a posted or non-discounted rate upon their mortgage renewal, perhaps hoping that their clients do not realize that there may actually be better rates available to them elsewhere.

That's where independent mortgage brokers come in. Mortgage brokers are able to get home owners the best and lowest mortgage rates possible. These professionals get to know their clients, and understand their individual needs, and therefore shop around keeping these factors in mind. Obtaining a first mortgage with a mortgage broker is your best bet. But even if you have been paying your mortgage through a bank since you first bought your home, when it comes time for your mortgage renewal in Alberta or elsewhere, you can always transfer your mortgage over to a lender who will provide you with a lower interest rate.

How Does a Mortgage Broker Provide Lower Rates For a Mortgage Renewal Alberta?

Independent mortgage brokers have a relationship with many different lenders, banks and trust companies that they know and trust and work with on a regular basis. Because of such a large selection of lenders available to these mortgage brokers, this allows them to get you the lowest mortgage rate, thereby providing you with a lower monthly mortgage payment and often better terms. A lower monthly payment means you can have more extra money for other things, or you can take that opportunity to pay the house off faster and put more equity into the home quicker. Your certified mortgage professional can do all the calculations and explain your options so you can reach your financial goals quicker.

Does It Cost Anything To Use A Mortgage Broker?

The simple answer is, no! The services of a mortgage broker are completely free of charge! Independent mortgage brokers who deal with new mortgages and mortgage renewals are paid through the lender that you choose, at no added cost to you.

Mortgage brokers are a fantastic asset in that they are able to not only save you money, but they also save you time since all the shopping around for the lowest rate is being done by them. You do not have to spend countless hours investigating all institutions trying to find the best rate for your mortgage renewal Alberta. There is also less paper work since you only have to fill out one application and have one credit record pulled.

Does It Cost Money To Transfer My Mortgage To Another Lender?

Some lenders may insist that you pay to move your mortgage upon mortgage renewal, but usually if your current mortgage is up, there is no charge. It is wise to start shopping around 6 months before the term ending date. Your new lender may pay for any expense related to having your mortgage moved from the bank to their lending institution. Any costs, such as legal fees, title insurance, or transfer fees, may even be covered by many of these lenders. That's why it's great to have a mortgage broker working for you, because they will find a lender that will cover these costs for you upon your mortgage renewal in Alberta.

In most cases, it is highly unlikely that you will be able to get as low a rate from your traditional bank as you would from a lender that deals with independent mortgage brokers, and some bank rates are not available to the general public. Since mortgage brokers deal with high volumes of new mortgages and mortgage renewals, these brokers are able to get better deals for you as well as great terms and conditions.

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About Samantha Stewart Advanced   Canadian writer

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Joined APSense since, August 27th, 2012, From Ontario, Canada.

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