When you’ve got “rate envy”, does it make sense to refinance?

Who would have believed that mortgage rates would have such a continued downward trend? Mortgage shoppers are looking at some of the lowest rates in history, and many homeowners with existing fixed-term mortgages are experiencing some “rate envy” about today’s rock bottom rates.

It might be worth a conversation 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 clients have been asking for a mortgage analysis – a detailed look at the penalties versus the payoffs – to determine whether it’s worth refinancing.

What does it cost to get out of your existing mortgage? Generally, you can expect to pay the greater of either a) three months’ interest, or b) the interest-rate differential. The interest rate differential can be high in some cases; your mortgage lender will expect you to pay them the equivalent of what they will lose by releasing you from your mortgage and lending the money at current rates.

So is it worth it? For some homeowners it can be an important moment of opportunity, while for others, it may not be worth the costs involved.  Most lenders will include the cost of the payout penalty and other costs into the new mortgage so you don’t have to be out of pocket to complete the transaction.

The team at MiMortgage.ca will be happy to help you make a realistic assessment of your situation and help you determine if your benefit outweighs the cost.  With rates where they are today, there’s never been a better time to talk. Contact us today to speak to an expert or to get pre-approved, apply now through our secure website.

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Sears Great Canadian Run

Image by courtesy of searsgreatcanadianrum.com

With three more weeks to go until the big race, the Mortgage Intelligence – Oshawa team is in full swing with their individual training regimes and as well as working together as a team.

 Update on sponsors:

A big thank you to Mark Woitzik of Brock Street Brewing Company for his generous team sponsorship and everyone for their contributions to support individual team members. With your help, the team has achieved 70% of their overall fund raising target. We are appealing to everyone once again, to dig deep in to their pockets and contribute generously towards this worthy cause. 

Image by courtesy of searsgreatcanadianrun.com

Your support will help the Mortgage Intelligence team to reach their fundraising goals and help enrich the lives of Canadian children who are suffering from cancer and their families. To sponsor the Mortgage Intelligence – Oshawa Team or a team member, please select one of the following: 

Sponsor Team

Chris McBride (Captain)

David Hetti

Kurt Lupson

Kyle Cosby

Malik Hetti

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5 ways to safeguard your credit score

Image by courtesy of Huffington Post

Many of us don’t seem to be aware of or understand the importance of maintaining a good credit score and how it effects our lives. A credit score is a three digit number that becomes a crucial element when you apply to get an approval for a mortgage to buy a home, or a loan to buy a car or just simply a credit card/loan.

Checking your credit score from time to time, to ensure that your credit is in good standing is important. A credit score of 650 + is considered as a good credit rating for individuals looking to borrow. Requests for free credit reports from Equifax can be made by completing and sending a credit report request form.

As mortgage agents, when potential borrowers make initial contact with us for a mortgage, refinance or renewal, we are compelled to run credit checks as a standard practice, to ensure that these potential borrowers have adequate credit to pre-qualify to obtain mortgage funding.

Here are 5 simple ways that will help you to safeguard your credit score and improve your credit:

1. Pay on time, every time, in full

Set up direct debit payments with your bank to ensure that payments are made in full and on time, every time. Late payments and partial payments will result in harming your credit score in the long run.

2. Keep your balances at a minimum

If you have already accumulated a substantial amount of debt, it is advisable to look at paying some of those debts off before you take on more.

3. Work on your long game

The route to establishing credit is through your credit history. Therefore keeping at least one active credit card and maintaining good credit standing over a period of time will help build your credit history.

4. Limit the number of credit cards

While your ultimate goal is to establish credit and maintaining good credit, it is also important that you limit the numbers of credit cards you sign up for. Potential lenders like to see that borrowers are stable and have maintained credit worthiness over time.

5. Maintain a variety of loans

As potential borrowers maintaining a  variety of different types of credit such as mortgages, student loans and credit cards, will demonstrate your credit worthiness.

A great article published by Huffington Post highlights the importance of maintaining good credit scores.

Please contact the team at MiMortgage.ca if you are in need of advice on how you can plan your finances or build your credit.

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Sears Great Canadian Run

Malik (far left) with his dad and two brothers.

It is five weeks to go until the race!  Malik Hetti has been clocking in 10 -15 Km runs with his dad, David Hetti and the rest of the Mortgage Intelligence Oshawa team members.

Malik is a grade eleven high school student at Holy Trinity, Courtice. Running is nothing new to Malik, as he has represented Holy Trinity in cross country running and soccer. He currently plays house league soccer for Oshawa Kicks Soccer Club and has had the opportunity to represent the Oshawa Kicks team at a soccer tournament in Cleveland, Ohio, in July 2015, where the team was placed third. 

Malik at a family wedding at the weekend.

Malik’s reason for participating:

“I am thankful to everything that I have achieved and would like to support this great cause in any small way I can!”

Your support will help the Mortgage Intelligence Oshawa team to reach their fundraising goals and help enrich the lives of Canadian children who are suffering from cancer and their families. To sponsor the Mortgage Intelligence – Oshawa Team or a team member, please select one of the following:

Sponsor Team

Chris McBride (Captain)

David Hetti

Kurt Lupson

Kyle Cosby

Malik Hetti

Sears Great Canadian Run

David with his son Malik and Kyle Cosby at the YMCA Megathon in March 2015.

The big race day is drawing closer… It is now less than six weeks to go until race day! David Hetti is vigorously training for the big race. His training schedule consists of weight training at the gym on two days a week and 15 – 17 Km runs on three days a week on his own. David and his trainer Kyle Cosby have also been doing regular hill training.

David got in to running sometime in 2008 with the intention of  becoming healthy and fit. Since starting running, he participated in the Toronto Scotia Bank and Toronto Good Life Half marathons in 2009. Although David has not been actively participating in any competitive running events recently, he continues his weekly runs as a part of his fitness regime.

David at a cyclefit session

David is a Mortgage Broker and the Team Leader at Mortgage Intelligence in Oshawa. His work involves assisting his clients with financial planning and offering mortgage solutions to best suite their financial needs and personal circumstances.

David’s reason for participating:

“I want to support the fight against child cancer in any way I can and this is a great opportunity to for me, to give back to the community that helped me to grow my business.”

Your support will help the Mortgage Intelligence team to reach their fundraising goals and help enrich the lives of Canadian children who are suffering from cancer and their families. To sponsor the Mortgage Intelligence – Oshawa Team or a team member, please select one of the following:

Sponsor Team

Chris McBride (Captain)

David Hetti

Kurt Lupson

Kyle Cosby

Malik Hetti

Name(required)

Email(required)

Comment(required)

Submit

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