By Samantha Garvin, Garvin Mortgage Group
Millions of Canadians are facing mortgage renewals in the next 18 months. Many can expect considerably higher monthly payments which is causing anxiety among homeowners, some of whom expect to have to make significant lifestyle changes to accommodate the higher cost.
It is more important than ever for mortgage holders to understand their options at renewal time, and to make strategic choices to help minimize the impact of higher payments. Potential strategies might include extending the amortization of the loan or choosing a shorter term for renewal. Homeowner strategies should always include working with a mortgage broker.
Extend the Amortization
Rather than paying significantly higher monthly amounts at renewal, borrowers who had made accelerated payments and lump sums earlier may be able to extend the amortizations to lower their payments.
Go Shorter
Shorter terms for a renewed mortgage will come with payment pain up front with higher rates than a five-year fixed mortgage, but it may offer longer term financial gain if, for example, the Bank of Canada cuts interest rates. Once that short term ends, you can likely renew again in two to three years at a significantly lower interest rate.
Work with a Mortgage Broker
Renewing your existing mortgage can be quick and easy with your current lender. However, simply signing that renewal slip won’t get you the best mortgage rate or product. By working with a mortgage broker who can provide you with mortgage renewal advice and tips, you’ll get the best lender, terms, and rate for your current financial situation.
Mortgage brokers are paid by lenders, not borrowers so my services are free to homeowners.
Please reach out for a complimentary review of your current situation and to assess your options before your mortgage renewal.
I look forward to hearing from you.
Samantha Garvin
Garvin Mortgage Group
www.garvinmortgage.ca
samantha@garvinmortgage.ca
(778) 580-5817
Follow me on Instagram @garvinmortgagegroup
