Back to school on saving money

September is here so let’s use that brisk back-to-work attitude to make sure your personal finances are on track to save you money over the long term.  If we haven’t talked in the last year, or if any of these situations apply, please get in touch:

1. You are considering a refinance for any reason – too much high interest debt is making cash flow tight, or you are considering a renovation, investment property, or have a large looming expense.  Proposed new mortgage rules include stress testing for conventional mortgages which, if implemented, will make refinancing more difficult for many Canadians.  Don’t delay; the new rules could be in place before year end.
2. You are thinking about moving to a new home and want to review your mortgage options.
3. You are wondering if you should lock in your variable-rate mortgage.
4. Your mortgage is coming up for renewal and you want to guarantee your rate now and ensure you get the best deal possible.
5. You know someone who could benefit from a fresh look at their mortgage options and would appreciate paying the least amount of interest and fees during their mortgage years.

Always keep in mind that the right mortgage plan can save you thousands of dollars!  Enjoy the fall season, and thank you so much for your ongoing support.

P.S. Do you have any home improvement store purchases coming up?  We have a new product that will save you money on these purchases.  Contact the team at MiMortgage.ca at 1 866 452-1100. Let us know if this applies to you!

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After the rate hike, what’s next?

On July 12^th, for the first time in seven years, the Bank of Canada increased the overnight rate by .25%, withdrawing some of the stimulus that was needed after the oil price collapse and 2008 financial crisis. Variable rate mortgages and lines of credit will see higher rates and modest payment increases. Fixed-rate mortgage – which are based on the bond market – had already been trending slightly upward, although if you have a fixed mortgage, you aren’t affected until it’s time to renew. Keep in mind that this is a very small increase, and we’re still in an ultra-low rate environment and an incredibly stable market. We’ve also seen increases before to only see them decrease again. But rates have risen, so here are answers to the questions we’re getting:

Should I jump into the market now?  Actually, our advice is always the same: buy when you are financially ready. Don’t jump the gun just because rates “may” go higher.  But by all means, if you’re thinking about buying, we can arrange a pre-approval so you’re protected from rate increases while you shop around.

Should I lock in my variable rate mortgage ASAP? That depends. Your new rate with the hike is probably still less than current 5-year fixed rates, and you’ll still likely pay less if there is another .25% increase. So why pay more money than you have to? Stick with your original strategy of focusing on payment vs. rate. But if it’s going to keep you awake at night – or the few extra dollars are hard to find in your budget – then let’s talk about your conversion options. Remember though, you should be confident you’ll stay in a 5-year fixed mortgage for the full term. Breaking a fixed mortgage can result in some tough penalties.

What if my mortgage is coming up for renewal? Don’t feel rushed or pressured by a renewal letter or call. Let’s discuss your options. We’ll review your renewal offer together and we’ll shop around to see if it’s really the best deal available. Got too much other debt? This may be the time to roll it into a new mortgage to boost cash flow and save on interest costs.

Should we talk? Yes for sure. You should have confidence in your mortgage plan and that’s why professional mortgage advice is so critical.  We have access to a wide range of lenders and know the right questions to ask to assess your situation and make sure you have the best mortgage strategy. Contact the team at MiMortgage.ca at 1 866 452-1100 to speak to an expert or apply online now!