With the Bank Of Canada expecting to raise interest rates another .50% you may feel the variable-rate rollercoaster is not worth riding anymore.
Certainty is not something that can be provided in an everchanging market, however, you do have options with your mortgage if you own your home.
If you do want to lock in your variable rate mortgage, we have put together a step-by-step process depending on your unique situation.
Please note: While this guideline includes the 3 most common lenders out there, the process would be the same for whichever lender you are with.
Here are answers to the 4 most common questions in our office this week.
- Should I sell my house? I’m afraid I can’t afford the mortgage.
With current market supply issues, if you are comfortable in your home and it suits your lifestyle, we would recommend staying put and reviewing your finances to find a solution. Rental and purchase properties are suffering from an extreme shortage right now. Since the supply still hasn’t opened up, selling could lead to a more stressful and financially detrimental scenario, opposite of the desired result. If you are relocating, moving in with family can be considered a benefit and we recommend consulting with us to develop a financial plan to ensure you feel safe and secure.
- Should I refinance early?
This will depend on your current mortgage amount, rate, lender, and current qualifications, which can be determined with a mortgage review.
- What do I do if my mortgage is up for renewal?
Ensure you have a budget and plan in place. Let us help review your mortgage payments on the stress test (at a higher than the rate you pay) to ensure you feel secure with your options to pay off your mortgage faster and protect your equity. Selecting a different amortization to calculate your payment can help with cash flow and budgeting. It is recommended to ensure you have 6 months of emergency savings set aside so that when it’s time to prepare for your renewal, your equity can help provide security for your family in changing times.
- Are there any mortgage options where I don’t have to make a payment?
A Reverse Mortgage is a tool for those over 55 years old with over 50% equity in their homes that want to flip the switch and not make payments anymore. Instead, the equity in your home makes the payments. This helps your investments last longer and gives you access to capital. These equity payments are non-taxable and increase your cash flow since you no longer are using any income/pension you receive towards a mortgage payment. This can also be used to gift money to family, pay off outside debt, or do a home renovation.
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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