Renewing Your Mortgage

Mortgage Renewals

Renewal time: It’s finally here!

You have been diligently paying down your mortgage for five years, every two weeks like clockwork. Chances are you had no idea what you even owed when your term was up!

Mortgages can be a little out of sight, out of mind. Renewal time is your opportunity to take a long look at your entire financial setup, your budget, how much you’ve saved and how much you’ve paid down your biggest debt. It’s also the right time to restrategize.  Too many people get focused on getting the lowest rate and ignore the other factors. Once you commit to a fixed or closed term mortgage, your options can become very limited. Capitalize on this time to take back some control, and adjust your mortgage and debt strategy to your lifestyle. Chances are that things have changed since you last signed mortgage paperwork!

Here are a few of the types of questions we would go through to get an accurate assessment of your renewal needs:

  • Has your life changed significantly (marriage, baby, divorce, retirement, new job?)
  • Has your income changed?
  • What about your savings habits?
  • Are you planning to move/sell?
  • How much debt do you have now? More? Less?
  • Has your 5 or 10 year plan changed? (retirement, change of business, i.e. transition to self employment)
  • Has your risk tolerance changed?
  • How much attention do you pay to interest rates? What are the rates doing at the moment, what is the trend?
  • Do you have a mortgage strategy?

Our meeting and discovery session will uncover a lot of clues about the best recommendation for you. Among the factors considered, we need to look at:

  • Your overall finanical position as assessed above
  • Fixed vs. Variable
  • Open vs. Closed
  • Term: how many years
  • Amortization: keep it the same? Shorter? Longer?
  • Do we need to change the lender for any reason? i.e. prepayment privileges

There is little reason to not scrutinize your renewal as closely as you did when you first got the mortgage. Make rate a consideration of your final decision, not the only factor!

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Did you know:

45% of first time buyers and 33% of repeat buyers use a mortgage broker for their mortgage needs.

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