Committed to providing solutions for your future needs.

Book a meeting
(877) 422-6346 x242
CANFIN
Jim Laszlo, RRC®
Jim Laszlo, RRC®
Financial Planner

Library

Audio

Indices

Calculators

PDF Library

Reviewing your mortgage is important

Article Licenses: unknown
Advisor Licenses:

Compliant content provided by Adviceon® Media for educational purposes only.


We have been blessed with low interest rates affecting lower mortgage rates. Have you thought about what happens to mortgage rates and how a household’s expenses go up when these rates rise?

Some mortgage thoughts to ponder:

  1. Variable mortgages. Variable-rate mortgages can be a good option when facing declining rates in the short term. And they can be risky if rates rise. Ask your mortgage advisor what mortgage plan suits your needs?
  2. When it’s time to renew your mortgage. Consider that you have a chance to work with an independent mortgage expert to save money. Watch for the letter that tells you it is time to renew or your notices coming in from your financial institution.
  3. Pay your bills and credit cards on time. Even phone company bills not paid can end up on your Equifax report. When applying for a new mortgage, your lender can see your credit score just when you need to appear in good standing as a responsible borrower.
  4. Don’t apply for credit everywhere. Avoid signing up for store credit cards because such applications trigger a credit inquiry. Too many inquiries make it look like you may be strapped for cash flow.
  5. Mortgage HELOC debt versus total debt. High-interest debt can be rolled into your mortgage if the interest rate is lower than your other loans. Plus, you may be able to include renovation costs in your new mortgage. Just be careful not to increase your HELOC (home equity line of credit) ratio close to your home’s value. There is always a temptation to use up your equity. Note: Talk to your mortgage advisor about the pros and cons of raising HELOC debt tied to your home if home values decrease dramatically or when bankruptcy occurs.
  6. Know your mortgage prepayment penalty. To get out of your mortgage early, the right mortgage with a lower penalty could save you a lot of money! Compare these penalties when shopping for your new mortgage with your mortgage expert.
  7. View mortgage pay-downs as an investment. A pay-down will pay it forward into your net worth. Thus prepayment privileges are essential! If you make monthly payments, consider paying your mortgage weekly or biweekly to reduce the amortization period.
  8. Give your mortgage an annual checkup. Keep your mortgage healthy – give it a yearly checkup. Even a minor tweak can better position your real estate planning.

 


 

Publisher's Copyright & Legal Use Disclaimer

All articles are a legal copyright of Adviceon®Media and are for educational purposes only. The particulars contained herein were obtained from sources which we believe are reliable, but are not guaranteed by us and may be incomplete. This website is not deemed to be used as a solicitation in a jurisdiction where this representative is not registered. This content is not intended to provide specific personalized advice, including, without limitation, investment, insurance, financial, legal, accounting or tax advice; and any reference to facts and data provided are from various sources believed to be reliable, but we cannot guarantee they are complete or accurate; and it is intended primarily for Canadian residents only, and the information contained herein is subject to change without notice. References in this website to third party goods or services should not be regarded as an endorsement, offer or solicitation of these or any goods or services. Always consult an appropriate professional regarding your particular circumstances before making any financial decision. The information provided is general in nature and should not be relied upon as a substitute for advice in any specific situation. The publisher does not guarantee the accuracy and will not be held liable in any way for any error, or omission, or any financial decision.

Mutual Funds Disclaimer

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investment funds, including segregated fund investments. Please read the fund summary information folder prospectus before investing. Mutual Funds and/or Segregated Funds may not be guaranteed, their market value changes daily and past performance is not indicative of future results. The publisher does not guarantee the accuracy and will not be held liable in any way for any error, or omission, or any financial decision. Talk to your advisor before making any financial decision. A description of the key features of the applicable individual variable annuity contract or segregated fund is contained in the Information Folder. Any amount that is allocated to a segregated fund is invested at the risk of the contract holder and may increase or decrease in value. Product features are subject to change.

Life Insurance and Segregated Funds Disclaimer

Life Insurance policies vary according to contract terms. Please read any Life Insurance policy contract provided, or the segregated fund summary information folder prospectus before the time of purchase. Full details of coverage, including limitations and exclusions that apply, are set out in the policy of insurance. Commissions, trailing commissions, management fees and expenses may be associated with segregated fund investments which may not be guaranteed and their market value changes daily and past performance is not indicative of future results. A description of the key features of a life insurance policy, a segregated fund; and any applicable individual variable annuity contract is contained in information provided by the company from which it is purchased. Talk to your advisor before making any financial decision. For specific situations, advice should be obtained from the appropriate legal, accounting, tax or other professional advisors. The information provided is accurate to the best of our knowledge as of the date of publication and is general in nature, intended for educational purposes only, and should not be relied upon as a substitute for advice in any specific situation. For specific situations, advice should be obtained from the appropriate legal, accounting, tax or other professional advisors. Rules and their interpretation may change, affecting the accuracy of the information.