Getting the best rate on your mortgage is one thing, and negotiating other components that will significantly affect the total cost of your loan is another. In addition to insurance, you must especially pay the famous administrative fee. This is a kind of compensation for the work of the consultant and the time spent by the consultant who studied your file. These costs are subject to negotiation taking into account the commercial policy of the Bank.
Take care of your borrower profile
Having a good borrowing profile is one of the big assets that can work in your favor when negotiating the application fee. Banking institutions will be more inclined to give you many advantages to encourage you to become their client. Thus, if you do not have current credit, pursue a stable career and have a significant personal contribution, you have a good chance of achieving your goals.
Play the competition
Take the time to meet with several lending institutions to compare their application fees. You can use our online comparison tool to quickly get an idea of the processing fees charged in the market. Thus you have a good working basis to start negotiations. Therefore, you may be able to ask your bank for an offer that is more attractive than that of your competitors, if you have a good relationship with them.
Use your relationships with the lending institution
If you were a previous customer of the bank to which you are applying for a mortgage, you will be able to confirm your loyalty when negotiating the application fee. If you are a good customer, the financial institution should lower the fee or even waive it entirely.
Go through a mortgage broker
A professional mortgage broker who can take care of all the steps related to your application for financing. Ensures that you benefit from the best possible loan rate. Her knowledge and experience in the trade doubles your chances of getting a significant reduction in management fees.