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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. We have access to over 50 lenders so we 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. You 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. We 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, we 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, we work for you. With access to dozens of lenders and hundreds of mortgage options, our goal is to help you make informed decisions so you always get the best package of rate and features that best fits your needs. Contact the team at MiMortgage.ca to speak to expert now!

 

 


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Our Top 10 Tips For 2014

We’re sharing our top 10 mortgage tips for 2014

Your home is probably the single largest investment you’ll ever make. Understanding how to choose the right mortgage is paramount. Although we can’t say for sure what mortgage rates will do – or how the housing market will shift – we are sharing our top tips for the year ahead; sensible strategies for today’s home buyers and owners.

  1. Variables are back. Several lenders are offering strong “prime minus” rates that could save you thousands in interest. And the mortgageBank of Canada is still holding their key “overnight rate” very steady and very low… making variable-rate mortgages a sensible option right now. Fixed versus variable has always been a challenging mortgage decision. Let us help you decide which financing option best meets your needs.
  2. Don’t sleepwalk through your mortgage renewal. Don’t miss out on an opportunity to save thousands on your mortgage. When your lender sends you a letter saying it’s time to renew… then it’s time to get an expert second opinion. We’re independent and we have access to over 50 lenders. If there’s a better deal, we’ll find it.
  3. Pay your phone bill on time! Paying your bills on time has always been the most important credit habit. Equifax recently started to include phone companies on credit bureau reports – so your lender can see if you have any delinquencies with your phone bills. Look like a good borrower.
  4. Keep other good credit habits. Don’t let your credit accounts exceed 30 per cent of your limit. Don’t cancel an old credit card without getting advice. And don’t sign up for store cards: they often have crazy interest rates, and the application triggers a credit inquiry (you don’t want a lot of those).
  5. Mortgage versus total debt. Do you have high-interest debt outside your mortgage that you won’t be able to pay off in the next few months? Then think about rolling that debt into a new low-rate mortgage. This one, smart strategy could save you thousands… and boost your monthly cash flow. We can analyze your situation to see if you qualify.
  6. What’s the prepayment penalty?Don’t let anyone tell you prepayment penalties are “all the same”. They’re not. If you ever need to get out of your mortgage early, the right mortgage could save you thousands. Not all lenders calculate penalties the same way, and the differences can be substantial. It helps to know which lenders have the most fair prepayment penalties. With access to dozens of lenders – we’ve got that information at our fingertips.
  7. If one of you wants to keep the marital home.If you are going through a separation or divorce and one of you wants to keep the marital home, we’ve got some great mortgage options, including a mortgage to 95 per cent. Your home can be the asset that gives you both a fresh start!
  8. A paydown will pay it forward. Take every opportunity to beat down your mortgage principal using any prepayment privileges! Use tax refunds, bonuses, whatever. Or switch to weekly or bi-weekly payments. Every dollar you pay down on principal means every future payment goes further.
  9. Thinking renovation? We see what you see. Your reno will add value to your home. That’s why we have a special “Refinance Plus Improvements” mortgage that lets you refinance up to 80 per cent of the new, post-reno value of your home. Cool deal.
  10. Come in for a checkup. Your mortgage needs an annual checkup. Really. Life doesn’t stand still, which means your needs may have changed. Even a minor tweak can pay big dividends.

Have a mortgage question? We’re here to answer it! Please use the form below to email us or call at: 866-452-1100