How to negotiate lower bills

Renewing your mortgage
What you need to know:
• What kind of business you are to the bank. A good customer pays her bills (especially her mortgage) on time, doesn't miss payments and doesn't bounce cheques. Being able to negotiate the best possible deals with your bank -- the lowest interest rate or the best terms, including prepayment options -- assumes you're a good customer, otherwise why would the banks be interested in keeping you on?

• What kind of mortgage you need -- a fixed or variable rate, an open or closed term, prepayment options, etc. -- and what the going rate is for that product. Check ING's website to find interest rates and terms.

• Your lender's interests are not yours. When your mortgage term is up, the bank will send you renewal forms. Don't just automatically sign the papers and mail them back. Chances are what they're offering is not going to be the best deal for you.

What you need to do:
• Check your credit report so you'll know how lenders will see your business. The better your credit rating, the more desirable you are as a customer.

• Make friends with your bank manager -- and not just before mortgage renewal time. If she knows your face and likes you, she may be more flexible. Branch managers have discretion and influence when it comes to setting your interest rate.

• Visit a mortgage broker. She has access to specialized lenders you probably have never heard of, plus her service is free because fees are paid by the lender who gives you your mortgage. Visit mortgagecentre.com to find a broker.

• Offer to consolidate your assets (RRSPs, RESP, unregistered investments, etc.) with them. The more business you can offer the bank, the better.

What you need to say:
• To a mortgage broker: "I'm shopping this mortgage around. What can you get me?"

• To your original banker: "I've been comparison shopping. I need your best deal." Then be specific, as in "I want a half per cent off my current rate. Can you do it?" If she already has all your business and isn't prepared to cut you a better deal, tell her you are prepared to take it elsewhere.