New Year ... It’s Time For a Mortgage Checkup!

Your personal and family goals are often changing, so it is expected that your financial goals will change as well. You may be planning to expand your family so will be considering only one income in your home, or maybe you are planning some upgrades and renovations in your home, or you have received a salary bump. All of these circumstances, plus many more, can effect your financial goals for the future, so a Mortgage Checkup will allow you to reevaluate your mortgage whenever a big life change takes place. A Mortgage Checkup is a review of your existing mortgage terms to ensure that they’re not only the best rates offered by lenders, but also to see if the terms of your mortgage still meet your needs. Let’s explore some situations that will require a Mortgage Checkup:  Time for renewal If your mortgage renewal is coming up, then it’s absolutely time for a Mortgage Checkup. Contact your Mortgage Broker as early as 6 months before the expiry of your current mortgage. This allows your Mortgage Broker to assess what your current lender is willing to offer and start the shopping process for a more competitive rate. Once they have obtained the best rate, terms and conditions for your personal situation, you can lock it in. You want to lock in your rate Having a clear vision of your financial goals will also allow you to relate your situation to what’s happening in the marketplace. If interest rates are starting to creep up and you think they’re going to start edging even higher, it might be the right time to lock in your current rate in order to avoid paying higher interest rates than is necessary.  You need to break your mortgage Did you know that hundreds of thousands of mortgage holders break their mortgage before the end of their first term? Many purchase their “forever” home but big life changes could result in them needing to sell, switch lenders, or refinance. A birth, a death, a divorce, or a job transfer could have you needing to sell your home before you had originally planned. Sometimes, renting isn’t a viable option (or you simply don’t want to be a landlord), then breaking your mortgage may be your best option. If you can see the writing is on the wall in advance, then together we can work out a plan for the best timing and understanding penalty costs. You want to refinance People refinance for all types of reasons – to take advantage of lower interest rates, tap into home equity and make repairs or improvements or to consolidate debt. Whatever your reason for refinancing, timing is key. You will want to understand the penalty costs in comparison to your savings to understand if this is the best option for your situation. Working with a Mortgage Broker is the key to helping you through the entire process. Generally speaking, unless you’ve got your mortgage very recently, it’s always worth doing a yearly Mortgage Checkup to make sure that your mortgage aligns with your current personal and financial goals. You may decide that your current circumstances don’t require you to change your mortgage at all, or your most viable option is to wait until it’s time for renewal – You should still be aware of your options. Contact me to discuss your mortgage and understand how it compares to the current mortgage market with your goals in mind.