PROUDLY CANADIAN
Renewing your mortgage can be a lifestyle changing opportunity
When you have made the investment in your first home, the world seems to be your oyster. You have gained a wonderful asset and the road to success and wealth is clearly defined; you have arrived! However, in the world of today, there are constant changes taking place, which knowingly or unseeingly affect our lifestyles and our bank accounts. The chain reaction does not exclude our everyday environment and how we are meeting our financial responsibilities, especially concerning our home and when the decision regarding the renewing of our mortgage is thrust upon us!
This is when you go back in time to those days of searching for sound advice, looking for the best rates from different lenders and now also potential penalties. It means you’re reviewing the disadvantages and reality of mortgage renewal or refinancing. However, one way of looking at it is to treat it as an opportunity to assess your current lifestyle and how much it’s costing you? One simple question you could ask is whether your current mortgage payment is consistent with your financial circumstances?
Beware of the lowest rates
Financial businesses are like any other, they want to make a profit, in fact, as much as they can and their sources include homeowners such as you! Therefore, whilst it’s appreciated that obtaining the best rate of interest is frequently the primary objective for many mortgage holders considering renewal, be wary! Remember that seemingly good financial related Samaritans also like to live well and are accordingly highly profit oriented.
Therefore, although a rate offered to you may have appeal initially, examine it in detail. Clever wording and legal jargon could be concealing additional costs that will come into play at a later stage. An example; is severe penalties for early payout, or transferring a renewed mortgage to another property in the event of you moving.
Reviewing your circumstances
On a more positive note, another consideration for you is that you today have an increased income since first entering into your first mortgage about 5-years previously. This means that increasing your payments by way of renewing your mortgage gives you the advantage of paying off the principal amount quicker! Your decision can also be influenced by children and the associated costs that arrive with them.
Whatever your circumstances, seeking some qualified advice first regarding clarifying your mortgage renewal options is always worthwhile!