As you reach the end of this series of articles, all aimed at helping you to achieve your goal of raising the money for your down payment in order to buy your first home in Canada we conclude with the essential point of checking and negotiating your interest rates.  You probably haven’t tried to negotiate your interest rates before. Now, this can actually end up being rather fun to do, so we’ve saved it until last! Whether you have credit cards, catalogs, loans, hire purchase or finance of any other type, your interest rates will differ between each.

Be prepared to have to do a little digging around for this one. However, please be assured that it will be worthwhile. Learning how to negotiate your interest rates can save you a lot of money and move you towards your goal of a first-time home.


Write It All Down

You will either need your last statements to hand, or you will need to give your finance company a quick call in order to ascertain precisely what amount of interest you are paying for each debt that you have.  One thing to ensure you ask for is the annual rate of interest, not the monthly rate.  Moreover, write it all down.  Put all of your findings either on a spreadsheet, or write it down. Work out how much in interest you are paying over the year in actual dollars.

Work Out Which Are Your Most Expensive Debts

When looking at which of your debts to pay off first, and deciding upon the order in which to pay; Many people would assume the biggest debts cost them the most money.  This isn’t always true.  If you follow the above point, you will know how much each of your debts is costing you per annum, and also what the annual interest rate is.  This will then allow you to work out exactly which debts are your most expensive, and then work out the order in which you can pay them off.  Making the debts which cost you the most money your top priority.

Request A Reduction

Sometimes, all it takes is a simple call – as long as you have not defaulted and are up to date on your payments, you could get a lower rate of interest, simply by asking.  You can also check with the companies who you hold finance with if they have any low-interest offers, such as 0% on balance transfers to your credit card, and potentially reduce or cut out paying any interest by doing this.   This is quite an easy suggestion to implement and depending upon the size of your balance, and the rate of interest you are paying can bring about significant savings on interest payments. You can call and negotiate your interest rates on the phone.

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Moving Your Money Around

This point refers to a few tactics that you can deploy to help you to save money with your interest charges.  The first one being about consolidation, bringing your balances together.  If you have checked your interest rates and have a lot of smaller balances, it might be cost effective to bring together those lower balances into one overall loan, or credit card balance.  This should instantly save you money on your interest payments, and also help to make your life a little bit easier to, as you will have less people to pay.  Secondly, just from transferring your balancing around from one borrower to another can bring about significant savings too; whether this is a loan or credit card, these financial institutions will most likely offer you a lower rate, as an incentive for moving your money around, so this action in itself can also help to save you money too. Moving your money is another way to negotiate your interest rates.

The above-listed ways are just a few examples of how looking at your interest rates in more detail, then taking a few key, decisive actions can really help you to take control of your payments, and in some cases, help you to save money, and time too.  If you can take these suggestions and implement them within your own life, you will have your down payment saved up in no time at all.