Mortgage options you might not know about… because no one has told you!
Whether you’re a first-time homebuyer, renewing your mortgage, getting back into the market, or buying a vacation or rental property, there are probably some mortgage options available that you’re not aware of.
And they might be options your lender doesn’t want you to know.
A mortgage broker can get you better rates and terms
When you receive your mortgage renewal statement from your existing bank, the easy and simple solution is to sign on for another term. But in a competitive mortgage market, your good credit history could mean better options, rates and terms than what you signed for two, three, or five years ago.
This may mean going with a different lender – I have access to over 40 lenders across Canada – but it can also mean getting better terms from your existing lender also.
Do you want to be mortgage free sooner?
Have your mortgage payments been leaving you financially strapped at the end of the month? On the other hand, you could be earning more income than you were earning when you first bought your home.
Mortgage renewal is a good time to readjust your payments. Decrease your payments and leave yourself with extra income each month, or increase your payments to pay down your mortgage faster and save thousands of dollars in interest over time.
Do you need cash flow for other things?
Sometimes those “unexpected” expenses are not really all that unexpected. Children growing up and going to college. A new car. The old roof or furnace may need replacing over the next few years. Major remodelling or renovations.
With a little foresight, we can plan for large expenses and “emergencies” by looking at financing options or making sure there’s money on hand.
Variable vs fixed rate mortgages
Rates are tough to predict. If you’re on a fixed income or other significant expenses, then a fixed rate might be best for you. But if you can handle the fluctuation and a little extra disposable income, then you may be able to handle a variable rate.
It’s best to base your decision on reliable information for your personal situation, not what you hear in the media or from family and friends. What’s right for other people in your life might not be right for you. Talk with your mortgage broker.
Thinking of selling your home?
Don’t be too quick to answer this. Most people say “no,” but statistics say “yes.”
Most people may not be planning to sell, but figures show that the majority of mortgages don’t reach their full term. If you’re likely to sell soon, don’t be consumed by the rate.
Consider a shorter-term mortgage or one that has flexible terms so you’re not penalized if you sell your home before the mortgage comes due.
Your Ottawa mortgage broker
If you’ve only dealt with the banks for your mortgage, you might not be getting the best advice. In fact, they’re relying on your lack of knowledge. The less you know, the better for them.
Know all your options by dealing with your Ottawa mortgage broker.