Just like other large-scale purchases in your life – like a car or your home – your mortgage can also benefit from seasonal review and tune up.
You maintain annual and seasonal maintenance on your Edmonton home, shouldn’t your mortgage financing receive the same treatment?
It is important to understand that reassessing your mortgage is not only reserved for times of financial hardship. It can be beneficial to re-evaluate your Edmonton mortgage even if, on the surface, it appears nothing has changed in your financial situation or needs. Checking in on your mortgage is often considered to be preventative care to ensure that you are getting the best deal and terms that fit your unique needs.
Borrowers working in the Services, Construction and Retail Sales industries had an above-average share in deferred mortgages; those working in the Government, Education and Health sectors had a below-average share. As of September 30, 2020, 7.2% of the CMHC insured homeowner transactional mortgages remained in deferral.
In this Edmonton Mortgage Blog, we are chatting about the most common warning signs that your mortgage could benefit from some extra attention. A tune up with one of our qualified Mortgage Minds brokers is an excellent way to check in on your mortgage and ensure you are keeping it in prime condition and fitting your needs.
Seven Warning Signs Your Edmonton Mortgage Needs a Tune Up!
1. Your Finances have been Impacted by COVID-19
2020 was a challenging year for many Canadians. If you have experienced financial shifts due to the COVID-19 pandemic, our mortgage brokers can help ensure you are receiving the best deal and terms on your mortgage. We offer options for new homeowners who are looking to take advantage of the current low interest rates and current homeowners looking to refinance their homes to accommodate new financial realities.
2. You Are Locked in to a Rate that is no longer competitive
If you are currently locked into a higher rate than you could get today, our Edmonton mortgage brokers can help to understand your options and secure you new opportunities and options for your current mortgage. Right now, mortgage interest rates are at an all time low, making it a perfect time refinance your existing mortgage or buy a new Glenora home in the heart of Edmonton.
3. You Can’t Stop Thinking About Buying a NEW HOME!
If you are thinking of buying a new home, moving neighbourhoods, (perhaps Riverbend or Windermere,) or purchasing an investment property by the University of Alberta, our Mortgage Minds brokers can provide sound expert advice to balance your financial needs with your homebuying goals. With our almost 100 years of combined mortgage industry experience, our brokers can provide expert forecasting on the Edmonton Real Estate Market, housing trends, and new opportunities to help ensure you choose the right mortgage at the right time.
4. You Have Cash Flow Problems
Whether you have been impacted by the COVID-19 pandemic, or other financial challenges, a Mortgage Minds broker can help to reassess your financial situation and how new mortgage opportunities can help elevate cash flow pressures. We highly recommend individuals who may be carrying more than $25,000 in high interest loans or credit cards, contact a broker today about consolidating debt and alleviating financial stress through secure refinancing options.
5. Opportunity Knocks! Hard!
Life happens fast and your Edmonton mortgage should adjust with you. Whether you are starting a business, changing careers, or planning a new adventure, our diverse team at The Mortgage Minds can help to adjust your mortgage to fit your new needs.
Perhaps this opportunity means an influx of cash – that’s great news! But before you throw that extra cash into your mortgage, it is important to assess your mortgage terms before deviating from your mortgage conditions and the agreements between you and your lender. Sometimes, putting an unexpected, large sum of cash down on your mortgage can have unintended and sometimes negative consequences.
6. You Have a Large Upcoming Expense.
Planning for a large upcoming expense should involve re-examining your mortgage. By leveraging your mortgage for additional cash flow, you can help cover the expenses of planned (and unplanned!) costly life events. A wedding, new baby or twins! Or upcoming College tuition expenses are all excellent life milestones that should prompt you to check in on your mortgage.
Additionally, before conducting any renovations on your home, it is important to check in on your mortgage for opportunities and lower rates to help cover the costs of your renovation expenses. This is particularly true for those unexpected renovations you were not planning, or maybe even saving for!
7. Your Mortgage is Up for Renewal.
This may seem obvious but understanding your mortgage renewal terms is the number one step you can take to maintain the quality of your mortgage investment. If your mortgage is up for renewal in the next 18 months, we encourage you to reach out to one of our specialists to ensure you are getting the right deal at the right time on your renewal. The more time you can shop your mortgage around to different lenders, the more likely you are to take advantage of marketplace trends and excellent rates.
So Now What?
We highly recommend our clients do an annual mortgage tune-up to ensure they are getting the best rates and terms. However, due to the economic shifts of the COVID-19 pandemic, we encourage all clients to check in on their mortgage and take advantage of the opportunities available now for new homeowners and refinancing.
If you have yet to check in on your mortgage in 2021 or recognize one or more of the common signs we listed above, we would love to chat. Keeping your mortgage in prime condition is a sure-fire way to save you money and support your long-term financial goals. And did we mention that consultations with our mortgage brokers are free to clients?!
At The Mortgage Minds, we are down to earth, caring and extremely passionate. Our mission is to provide our customers with excellent service and guidance throughout their renewal process. We are proud of the services and expertise we bring to the table and take great pride in our pledge to help our clients make mortgage buying decisions that are best for them.
To contact a broker from The Mortgage Minds, visit themortgageminds.ca/contact/