Sure, credit markets have gone wonky lately, but the good news for people renewing or shopping for a first mortgage is that the wheeling and dealing days for consumers haven’t disappeared.

Mortgage borrowers “still have lots of negotiating power, but you need to know what you can negotiate down to,” says Nelly Van Berlo, an accredited mortgage professional and president of the Mortgage Source Inc., a franchise of the Mortgage Centre.

It takes some research, selfevaluation and shopping around to come up with a deal that’s right for you. Here are some tips on what to ask and where to find information. Is that the best you can do? You don’t have to be nasty when you ask, but don’t be shy either. Asking for a better mortgage rate than the posted rate has become so common that lenders factor it in when they set rates. Yet one common mistake people make is to automatically sign and mail back the deal their lender sends at renewal time. Even if they negotiated a better rate previously, the renewal document most likely is at posted rates, not the discount they got before, says Van Berlo.

How much of a discount you get will vary. People with good credit histories have more clout. Bigger mortgages with longer terms are likely to get bigger discounts (think one per cent or so) than small mortgages with shorter terms.

Shop at competing lenders or at mortgage brokers, who represent a variety of lenders.

If you find a better deal, ask your lender to match or better the rate. Be careful not to trigger credit checks by potential lenders as you comparison shop. Although it isn’t supposed to happen, Van Berlo says multiple credit checks can sometimes hurt a person’s credit rating.
What flexibility features and fees does the mortgage have?

Go for the product, not just the rate. Some “no frills” mortgages offer great rates, but potentially expensive costs if you need to get out of the loan agreement before the term is up. Ask about flexibility to make extra payments, increase the monthly or weekly payments.

Also check into fees and penalties. You should refuse to pay a renewal fee if your lender wants to charge you for the privilege of keeping your business. But you may face a fee of several hundred dollars if you want to switch elsewhere. In that case, ask the financial institution you are moving to if they will help offset the cost of switching.

What’s in your financial future?

Lots of people worry about interest-rate forecasts. They wonder if they should take a longerterm mortgage to lock in today’s rates for perhaps five years, or take a short-term approach and wait for rates to fall further.

Consider your personal financial forecast in determining your strategy and what loan features are important to you.

The mortgage checkup should look at all household debts, income, whether job security is an issue, and just how large a payment you can handle.