Your
home may be the biggest investment you’ll ever make. That means you want to be
smart with your mortgage. Although we can’t say for sure what mortgage rates
will do – or how the housing market will shift – we have compiled our top tips
for the year ahead; sensible strategies for today’s homebuyers and owners.
1.
Variables are back. Several lenders are
offering strong “prime minus” rates that could save you thousands in interest.
And the Bank of Canada is still holding their key “overnight rate” very steady
and very low… making variable-rate mortgages a sensible option right now. Fixed
versus variable has always been a challenging mortgage decision. Let us help
you decide which financing option best meets your needs.
2. Don’t sleepwalk through your mortgage
renewal. Don’t miss out on an opportunity to save thousands on your mortgage.
When your lender sends you a letter saying it’s time to renew… then it’s time
to get an expert second opinion. We’re independent and we have access to over
50 lenders. If there’s a better deal, we’ll find it.
3.
Pay your phone bill on time! Paying your bills on time has always been the most
important credit habit. Equifax recently started to include phone companies on
credit bureau reports – so your lender can see if you have any delinquencies
with your phone bills. Look like a good borrower.
4.
Keep other good credit habits. Don’t let your credit accounts exceed 30 per
cent of your limit. Don’t cancel an old credit card without getting advice. And
don’t sign up for store cards: they often have crazy interest rates, and the
application triggers a credit inquiry (you don’t want a lot of those).
5. Mortgage versus total debt. Do you have
high-interest debt outside your mortgage that you won’t be able to pay off in
the next few months? Then think about rolling that debt into a new low-rate
mortgage. This one, smart strategy could
save you thousands… and boost your monthly cash flow. We can analyze your situation
to see if you qualify.
6.
What’s the prepayment penalty? Don’t let anyone tell you prepayment penalties
are “all the same”. They’re not. If you ever need to get out of your mortgage
early, the right mortgage could save you thousands. Not all lenders calculate
penalties the same way, and the differences can be substantial. It helps to
know which lenders have the most fair prepayment penalties. With access to
dozens of lenders – we’ve got that information at our fingertips.
7.
If one of you wants to keep the marital home. If you are going through a
separation or divorce and one of you wants to keep the marital home, we’ve got
some great mortgage options, including a mortgage to 95 per cent. Your home can
be the asset that gives you both a fresh start!
8.
A paydown will pay it forward. Take every opportunity to beat down your
mortgage principal using any prepayment privileges! Use tax refunds, bonuses,
whatever. Or switch to weekly or bi-weekly payments. Every dollar you pay down
on principal means every future payment goes further.
9.
Thinking renovation? We see what you see. Your reno will add value to your
home. That’s why we have a special “Refinance Plus Improvements” mortgage that
lets you refinance up to 80 per cent of the new, post-reno value of your home.
Cool deal.
10.
Come in for a checkup. Your mortgage needs an annual checkup. Really. Life
doesn’t stand still, which means your needs may have changed. Even a minor
tweak can pay big dividends.
CanadaMortgageNews
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