How to lower your refinance mortgage rate in Canada
First thing I want to clear before I continue writing this post is that I don’t give financial advice if you’re looking for financial advice seek a professional.
With that said if you’re about to refinance your mortgage and you’ve been paying your mortgage bill on time every month and you’ve also been paying your bills on time every month you have a RIGHT TO BE A JERK TO YOUR BANKER! Now by being a jerk I don’t mean screaming or yelling obscenities at them what I mean is this is your chance for you to make them sell themselves to you on why they should refinance your mortgage and what I’m getting at here is the bottom line.
I lived in America and I’ve lived in Canada and there is a big difference between the two when it comes to banks. Canadians trust their bankers they believe their bankers and their banks are the best thing in the world. Americans on the other hand look at bankers like BANKSTERS which basically means the average American consumer who is more financial liberated than you might think looks at bankers as crooks. A lot of Canadians are paying WAY TOO MUCH! to refinance their mortgage and the reason they’re paying too much is because they’re not haggling with their banks or financial institutions when it’s time to renew.
Canadians try to understand that banks are FIGHTING for the business of a person with good credit history if you have a excellent credit make those banks come down and the only way to make a bank lower your interest rate is if you threaten to leave them. If you’re not getting or don’t qualify for the bench-mark rate for your refinance your mission should be to get the lowest rate available and the way you do this is by threatening to leave. When this strategy doesn’t work is when you’re breaking your mortgage however when this method does work is when it’s time to refinance and if you’re smart you’re not going to leave this up to the last minute you have to start doing this 3 month’s in advance.
There’s a myth going on in Canada regarding pulling your credit that Mortgage brokers and even Banks like to trick consumers into believing it’s this idea that pulling your credit will lower your credit score. Yes pulling your credit score can lower your credit score temporarily however Banks and other financial institutions could care less about your credit score if you have a history of paying your bills on time. If you’re like me and you pay your bills on time and do your absolute best not to pay your bills late or let things go into collections the bank can’t say much to you not to give into your demands.
Now look I enjoy being a jerk to my bankers I like them working hard to get my business and when it was time for me to refinance in the past I took pleasure in telling my bank that I would be shopping around. Now shopping around doesn’t mean that I’m going to leave my bank but what it does mean is that I’m going to find the best rate out there and in all situations I came out on top coming very close to the benchmark almost every time and forcing my bank to match offers every single time. Remember when you’re refinancing the bank isn’t going to get the penalty fee from you which means this is your time to shop around. Don’t let them scare you with that pulling your credit a bunch of times will lower your credit score crap. The thing that will lower your credit score is having too much OUTSTANDING credit at their maximum credit limit and NOT PAYING YOUR BILLS on time.
I never recommend living outside your means I do recommend investing and building assets within your means because this is how you make banks work for you and not against you. Bankers are NOT your friends in most instances their just as bad as used car sales actually their worse because in most instances they’ll kick you when you’re down so make sure you push them around when you’re up and, in your mind you should be smacking them up side the head. For the most part Canadians have pretty good credit it’s one of the reason why enjoy the lifestyle we have in this country.
A mortgage is probably the most expensive thing you’ll pay in your lifetime so make sure you pay the least for it. I see people looking for deals with their clothes, shoes and even cars but for some reason Canadians are scared to haggle when it comes to refinancing their mortgage, in fact I don’t even know if most Canadians know how to haggle for their mortgage. Haggle ask them to bring that price down shop around don’t get comfortable with a mortgage there are several laws in place in Canada that taxpayers fought for; make sure you exercise your rights and don’t settle on the first refinance offer that the bank throws at you. If they’re not giving you a benchmark rate ask them why and see if you can find better don’t let your banker trick you into thinking that pulling your credit will lower your score. This bankers when looking at your credit are looking at one thing and that’s your repayment history.
Also don’t forget that Mortgage agents and professionals that deal with mortgages get a paid a fee from the financial institution that gave you the mortgage and in many cases those professionals are banking professionals are looking out for their commission checks and not your best interests. By them looking out for their best interest this could cost you HUNDREDS OF THOUSANDS OF DOLLARS IN INTEREST fees alone. While you’re paying those fees your banker or mortgage broker might be living the good life while you’re slaving at your job paying a higher interest rate than you need to be paying! Bankers are not your friends when dealing with money treat money which is your business with dignity and respect don’t let some well dressed SALES, COMMISSIONED person play you for a fool.