IS YOUR MORTGAGE UP FOR RENEWAL IN 4-6 MONTHS?

by | Nov 22, 2022 | Mortgage Advice

Is Your Mortgage Coming Up for Renewal in 4-6 months?

With all that’s going in with interest rates, inflation and future uncertainty, no doubt you may have questions or even fear about your upcoming renewal.

You may think your only option is to sign again with your current lender but that is not always the case. It may be in your best interest to consider ALL your options, whether that means switching to a new lender, re-structuring your mortgage to better meet your needs or perhaps there been a change in your circumstances that requires fine tuning your mortgage.

Did you Know?

  • Your lender will not necessarily offer you their best rate for renewal AND the rate you will be renewing at is most likely higher than what you are paying now? However, there are some solutions here that can help you reduce your payment and increase cash flow.
  • You can potentially consolidate your higher interest debt, think credit cards or unsecured lines of credit, into your mortgage, helping with cash flow, life’s extra expenditures or investment goals. This can certainly save you money!
  • If your current situation or goal for the property has changed, so too, should your mortgage. Mortgages need to be tailored to your current and future circumstances, which is why rate is only ONE factor of a mortgage. For example if you want a HELOC, are wanting to sell soon, need cash flow over equity building, then it may be time to look at a better suited mortgage product.
  • The mortgage landscape has changed and you need to be in the know. What can be expected for interest rates in the future and how does this information determine your term selection or a fixed versus variable rate mortgage.

How I can Help:

To increase cash flow or reduce payments, let’s consider CONSOLIDATING DEBT, INCREASING YOUR AMORTIZATION OR FINDING A LENDER WITH A BETTER RATE  for your type of mortgage.

  • Consolidating debt can reduce your overall out flow of cash each month which can help through these tougher times
  • Extending your amortization (how long it takes to pay off your mortgage in full) can lower monthly payments – if you are concerned about a longer amortization, pay bi-weekly which shaves down your amortization and saves you in overall interest as well!
  • There are some “sweet spots” for better rates that your bank can’t offer but non-banks can. It’s always good to check if you can take advantage of a lower rate offered by non banks.

If your home goals or situation have changed, let’s talk about term selection, fixed versus variable rate choice, mortgage features and flexibility! Mortgages can be complex and you don’t know what you don’t know. I can help you understand your options and provide solutions to help you plan for now and in the future.