This is a big year for mortgage renewals. You deserve to get the most out of your investment; by adhering to the following tips, you stand a great chance of saving thousands down the road by handling your mortgage renewal the right way

Start planning for the renewal at least four months in advance
You want to give yourself plenty of time to research every available lender and product with the unbiased credit-protecting free service of an independent mortgage professional. While this is always true, it is vital at times when rate hikes are expected, such is the case in Canada currently. With mortgage rates predicted to increase upwards of 1.5 percentage points finding the ideal lender/loan combination with the best terms to navigate changing times is imperative

Understand the difference between fixed and variable rates
Every type of mortgage carries with it a level of risk; determining which type is best for your individual situation is the main challenge. With a fixed, you have peace of mind knowing your rate will never increase throughout the term. However, this also means it can never go down, your penalty can be higher to exit the mortgage, and you pay a higher rate for security. On average, this is approx. 1% so you generally pay more interest upfront, and if you want to change to a fixed, you can at any time. Variable-rate mortgages change with the ebbs and flows of the economy.  The right mortgage strategy is put together when you understand those numbers and how it compares to your emotions on handling changing variables.

Consolidate your debts
If you are carrying debt outside your mortgage, absolutely include that into a new mortgage and do a refinance instead of renewal. This way you will get rid of those outside payments, save hundreds if not thousands every month, and if you ever dreamed of moving up the property ladder, retiring earlier, owning an investment property, this will improve your qualifications to give you the options to do so and help you become debt-free sooner. This is your time to do just that and take the equity out with a renewal.

Some other considerations could include:

• Any big purchases such as home renovations
• Paying out a guarantor or gift you received to make your home purchase in the first place
• Or if you just don’t have an emergency fund handy

You can also check out the post we did just on debt consolidation by clicking HERE

Assess and adjust your amortization period if viable
The longer you pay on your mortgage, the more interest you will be compelled to pay. Trimming your loan period by even a couple of years can save a bundle. On the other hand, if you are in a cash crunch, want to save for other investments, or are going through a divorce you may want to take a longer period if available to you while you navigate your agreement.

Buy insurance to protect your assets
This can come in the form of critical illness or life insurance, but both are guaranteed to provide a critical financial safety net in the event of a major life change or emergency.

These five steps will prevent you from making a big mistake when it comes to renewing your mortgage. Ask plenty of questions and go through the process of thinking about not just the immediate future but the next decade; remember, it is your money on the line.

Angela Calla is an 18-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. 

In August of 2020, at the young age of 37, Angela surpassed $1 Billion dollars in funded personal mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

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