Navigating Mortgage Renewals: Tips From a Mortgage Broker
According to Canadian Mortgage Trends, approximately one in six mortgage holders (15%) describe their mortgage payments as “extremely challenging.” Homeowners often have concerns about how renewing their mortgage will affect their finances. These concerns may arise even if the Bank of Canada does not change the interest rates.
The survey found 40% are worried, while 39% are “very worried” about the prospect of higher payments at renewal. Those facing renewal in the next year are most concerned, with 57% saying they are “very worried” that their monthly payments will increase. CanadianMortgageTrends.com 2023
As a seasoned mortgage professional, my mission is to help you navigate the maze of mortgage renewals. I want to set you on a path to a manageable financial future. Planning the end of a low-rate mortgage well in advance is crucial and can make a significant difference.
Preparing for the “Sticker Shock”
One challenge homeowners face is transitioning from lower to higher rates during mortgage renewals. To soften the blow, I suggest reviewing ways to restructure things or refinancing a year ahead. This way, you have time to brace yourself for the shift in interest rates.
Playing Around with Restructuring and Refinancing
Teaming up with a mortgage professional gives you the chance to explore different strategies with multiple lenders. One approach involves refinancing to extend the amortization period Translation: lower monthly payments, less financial stress. Additionally, there are specific products available on a transfer that may achieve similar results, offering flexibility tailored to your money situation.
Proactive Planning for Economic Shifts
Economic ups and downs can throw us off balance. That’s why teaming up with a professional is more important than ever. Instead of ignoring the situation and crossing your fingers, let’s make a plan. With my experience, I can share insights into refinancing details, ensuring your decisions match your long-term financial goals.
Creating a Stress-Free Financial Future
My main goal? To empower you to create a stress-free financial future. Through open communication, strategic planning, and collaboration with experienced mortgage professionals, homeowners can navigate mortgage renewals with confidence. Tackling potential challenges early ensures a smooth ride, letting you focus on building a strong and secure financial foundation.
Thinking ahead and teaming up with a mortgage professional are game-changers when your mortgage is up for renewal.
Ready to plan a stress-free financial future?
Let’s do this.
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