6 Reasons to work with a Mortgage Expert on your mortgage renewal
February 12 2019 Posted by
6 reasons to work with an expert on your mortgage renewal
Given the large financial commitment of a mortgage, it’s surprising that so many homeowners sleepwalk through the mortgage renewal process and don’t look at all their options in the marketplace. Many accept whatever their lender offers or just have a short negotiation to shave a few points off. While it’s tempting to choose what is easiest, it’s so important to have a mortgage expert working for you as early as 9 months prior to renewal. Here’s why:
1. I have access to over 50 lenders so I can make sure you are being offered the best deal possible.
2. Having a good credit score is important if you want to switch your mortgage to a new lender for a better deal. Your current lender may also take your score into consideration at renewal. You have more control over your credit score than you think, and you may want to discuss credit improvement strategies.
3. If you have enough equity in your home, you may be able to move high-interest debt to your lower-rate mortgage, improving cash flow and saving on interest. Renewal is the perfect time to do this. I can run the numbers to see if this strategy makes sense for you.
4. Taking on new debt or leaving your current employment prior to renewal can affect your ability to move your mortgage to another lender. We can discuss the potential impact of changes to your personal situation.
5. If your mortgage isn’t insured, I can help determine if you can switch to a lower-rate insurable mortgage that offers long-term savings.
6. If you need to free up cash flow for specific needs or life situations, a 30-year amortization might be an option for you to consider (20% or more in equity required).
Remember, I work for you. With access to dozens of lenders and hundreds of mortgage options, my goal is to help you make informed decisions so you always get the best package of rate and features that best fits your needs.
First-time buyers – take advantage of the RRSP downpayment boost by March 1
Using your RRSP money for your downpayment is a great strategy for some first-time buyers. It may help you achieve the 20 per cent downpayment needed to avoid mortgage default insurance premiums, or simply give you a financial boost when you need it most. First-time homebuyers can withdraw up $25,000 per person under the Federal Home Buyers’ Program (HBP). If you have saved $25,000 and have enough RRSP contribution room, you can contribute that amount to your RRSP by the March 1 deadline. Then after 90 days, you can redeem those funds under the HBP. Since your contribution counts as a tax deduction, you may get a nice tax refund this spring to further assist you with your homebuying plans. You will however need to pay the withdrawn funds back on a 15-year repayment plan.