PROUDLY CANADIAN
For most people who take out mortgages, the conditions at signing look very attractive. Things can change quickly, and once a favourable loan can become a true burden just a few years later. It is essential to recognize when the time is ripe for a refinancing loan, so you can react before the situation starts spiraling out of control. A mortgage broker can help you in this quest by listing the typical warning signs that send a message that your credit arrangement isn’t working the way you anticipated. Here they are, in no particular order:
Interest rates you pay are far above the current average
A loan can last for decades, and market conditions can dramatically change in the meanwhile. For homeowners with a fixed rate that could mean a significant loss every month. To take advantage of the lower rates, such individuals would have to reapply for another mortgage that would be calculated based on the going rate. Of course, the difference between the original rate and a new one must be quite large to make it worth the hassle.
Money is running short at the end of every month
If you are chronically finding yourself cash-strapped after meeting the obligations towards the lender, that’s probably a reason to consider realigning your debt. Most people hope that an occasional raise or side job would help them to withstand their mortgage, but in some cases, the additional money is simply not forthcoming. A loan renewal could help you extend the repayment period and soften the blow that your family budget suffers every month.
You are missing payments from time to time
One missed payment probably won’t totally ruin your financial credibility, although it should be taken as a sign that control is slipping through your fingers. Being overconfident about your ability to clear the late payment along with the next one is what’s truly dangerous here, and it is a smart move to think about some kind of relief instead. Loan renewal is one convenient way to minimize the damage and make sure you can meet the payments on time.
Your house isn’t large enough to support your needs
You don’t have to be in financial trouble to benefit from mortgage refinancing. Guelph residents with large families could be in need of more comfortable accommodation long before their existing loan is up, and they would be well advised to seek renewal from one of the local lenders. If the application is well-timed, it might be possible to get a larger home and achieve some savings in one grand stroke.