Are you on the brink of renewing your mortgage? We understand that the prospect can be both exciting and daunting. Back in 2019, when you first initiated your mortgage, the rates were substantially lower than what the current market offers. As a valued client, we're here to offer insights that can ease your mind during this renewal phase. My business took off in 2019. I am sending this advice out to my clients who funded their mortgages in 2019 & 2020 as the sticker shock can be a bit much. The way to handle the changes to your payments is to engage early, ask for help and most importantly not avoid what is coming. Being proactive and engaging your mortgage pro is your best form of defence. Here are some key points to consider as you approach your mortgage renewal:
1. Explore Beyond Your Current Lender
Don't settle for simply signing a renewal with your existing lender. At our end, securing the lowest rates for our clients is a point of pride. When you find yourself within six months of your mortgage maturity date, reach out to us to schedule a discovery call. During this conversation, we'll delve into the various options available to you. We'll also provide insights into the current market trends and offer a glimpse of what you can anticipate for your personal mortgage.
2. Don't Hesitate to Shop Around
It's important to note that you're not obliged to accept the mortgage rate presented during the renewal period for your upcoming payment date. While your current lender may make efforts to retain your business (a positive move), you're not tied to renewing for the immediate payment date. This means you need not sacrifice your existing lower rate for a higher market rate. We can actually secure a rate hold for up to 120 days. If your current lender extends a lower rate, fantastic – we can proceed with renewal. However, if this isn't the case, let's refrain from embracing a higher rate prematurely. Get a second opinion always.
3. Prepare for the Impact
Your 2024 renewal might come with the shock of a payment increase – we understand that this might seem overwhelming. To help mitigate this impact, we suggest a practical strategy. Consider gradually increasing your mortgage payment every 4-6 months leading up to your maturity date. By doing so, when your rate eventually rises, you'll be accustomed to the higher payment amount. Furthermore, this approach allows you to chip away at more of the principal before your maturity date arrives. (yay a win for you) pay a slightly higher payment now and take a chunk out of that mortgage payment. Even $10.00 bi-weekly can make a difference over time.
4. Tools to Balance the Impact
Another effective approach to counterbalance the increasing rates and lessen the overall cash flow strain during renewal is to think about making a lump sum or pre-payment. This can be a valuable tool in managing the financial implications of the renewal. We're more than happy to walk you through these options in detail. Think Christmas bonus, tax return or even a small gift of $100.00 from your birthday. These lump sums can make progress over time and could allow a lower payment if you extend the amortization when you reach your maturity date.
5. Expert Guidance is at Your Service
In an uncertain market that even surprises professionals like ourselves, we want to assure you that we're here to provide the guidance and assistance you need. If you have questions that could enhance your renewal experience, let's connect. Feel free to book a call through this link: www.emilycallme.com. I am committed to making your renewal journey as seamless and informed as possible.
Remember, your peace of mind is my priority. As you approach your mortgage renewal, take comfort in knowing that we're here to support you every step of the way.