Who would have believed that mortgage rates would move so low? Today, mortgage shoppers are looking at some of the lowest rates in history, and many homeowners with existing fixed-term mortgages are experiencing “rate envy” about today’s rock-bottom mortgage rates.
It might be worth a conversation with a mortgage broker about your options. Typically, we think of a fixed term mortgage as a non-negotiable contract. And it’s true that there are financial penalties to re-negotiate. But, many homeowners have been asking for a mortgage analysis- a detailed look at the penalties versus payoffs- to determine whether it’s worth refinancing. Lake many Canadians, you may find that refinancing makes sense.
There are two approaches to refinancing: you can simply pay out the existing mortgage and start fresh with a whole new mortgage, or you can opt for what is termed a blend and extend.
Firstly, understand that you may not reap immediate rewards when you re-finance: it may take time to see the benefit. Since there can be upfront penalties. So if you’re going to sell your home in the next year, you’re unlikely to benefit from a re-finance now.
Your mortgage broker can help you assess your “payback” period: the length of time required to see any savings, based on the penalties you will incur and the difference in your existing rate and the new one.
Speaking of penalties, generally you can expect to pay the greater of either a) three month’s interest, b) the interest rate differential. Interest rate differential can be high, if current rates are considerably lower than what you currently have. However if you are close to the end of your mortgage the penalties may not be high. The detailed analysis will outline the best options for you.
So is it worth it? Only your mortgage professional can tell you for sure. Many homeowners can experience significant savings with a refinance to a lower rate.
Begin with a call to your mortgage broker, who has access to rate information from a broad range of lending institutions and who can provide you with the kind of detailed analysis you’ll need to assess your options.
Elfie Hayes (AMP)
Mortgage Agent FSCO Lic M08001377
Mortgage Intelligence FSCO Lic MI-10428
905-443-0197
www.lowrate.ca
"Your Durham Mortgage $olutions Team".... adding value to your business everyday!
Mortgage Renewal … opportunity is knocking!
If you currently have a mortgage, at some point it will come up for renewal, or maturity. This is an opportunity for you to make changes to the mortgage that reflects your current situation without the cost a penalty.
Chances are your life has changed in some way since you originally applied for your mortgage, so the big question remains… Why would you simply sign the renewal that your bank sends you? Do you even know what type of mortgage is best for you NOW? Are you aware of what’s new in the mortgage industry? Is there something that could save you thousands of dollars? Is this a time of opportunity for you and your family?
In Canada 87% of all mortgage holders sign the renewal that they receive from their bank without knowing if they are making the right choice. Lets’ get real about this. The biggest debt a family has is the mortgage. Why wouldn’t you want to know you are doing the right thing? Remember back to when you originally applied for the loan? You were careful to make sure the rate was good and you could repay it quickly and it had the features and term that best suited you. It was a good opportunity for the right choice!
So why are you just signing on the dotted line without reviewing your entire situation now. Because most people think it’s a hassle to do so, that’s why. The truth is if you already have a mortgage, it’s easy. You will do an application and sign a set of mortgage approval documents, but in about 2-3weeks your new mortgage can be in place and you can relax for the next 3, 5, 7 or ten years, depending on what you choose.
At renewal many borrowers also want to consolidate their debt, so here’s another opportunity for you to reduce your multiple debts into one lower payment at the lowest rate of interest possible. The difference in the monthly payments may even give you an opportunity to contribute to you savings or RRSP for the first time in a long time because you now have good cash-flow. Are you going to miss your next opportunity or are you going to investigate and benefit? Make the right choice. Seize “Your” opportunity!
Elfie Hayes (AMP)
Mortgage Agent FSCO Lic M08001377
Mortgage Intelligence MI-10428
905-443-0197 or www.lowrate.ca
If you are a Real Estate Professional, you can benefit from the new Home Renovation Tax Credit that has been approved resently by the Canadian Government.
Even though we are in uncertain times right now, many Canadians are still moving. Why not use the new Home Renovation Tax Credit as a way to generate some new business. It can be used in conjunction with Purchase Plus Improve (an insurer based program to allow home buyers to finance improvements into their mortgage at the time of purchase).
Buyers get historically low prices, upgrades to their new home, something that will give them a better quality of life and a more valuable home. And now a Tax Break!
Promote yourself as the person who knows about the HRTC and the benefit of using Purchase Plus Improve. Post some info on your website and it won’t even cost you a dime!
Helpful Link: http://www.enwisepower.com/products/rebates.aspx?gclid=COGgx_ii15gCFQITswodPnXdcQ
Elfie Hayes (AMP)
Mortgage Agent FSCO Lic M08001377
Mortgage Intelligence FSCO Lic MI-10428
905-443-0197
www.lowrate.ca
"Your Durham Mortgage $olutions Team".... adding value to your business everyday!
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Get Ready to Save! Elfie Hayes invites you to contact her office whenever you need a Mortgage. They are "Your Durham Mortgage $olutions Team"!
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