Top Ten Mortgage Tips for 2013!

February 20, 2013 - Updated: February 20, 2013

Your home may be the biggest investment you’ll ever make. That means you want to play it smart with your mortgage. Here are our Top Ten for the year ahead: sensible strategies for today’s homebuyers and owners.

  1. The smart money is on non-traditional lenders.  Another wave of mortgage lending rules has many Canadians looking at non-traditional lenders: those not federally regulated. As trained, accredited mortgage brokers, we’re always scouting out the best options, so we can help more Canadians achieve their homeownership dreams.  
     
  2. Avoid rollovers. That’s when your mortgage comes up for renewal and you just roll it over with your current lender. If you are auto-renewed at posted versus discounted rates, the difference can be hundreds of dollars a month. At renewal, you have a moment of opportunity to shop around, and make every last dollar count. Contact us for the best range of options.
     
  3. Polish your credit.  A low credit score can prevent you from getting the lowest mortgage rate. That’s why it’s so important to have good credit behaviours, like paying your bills on time. Don’t let your credit accounts exceed 30% of the credit available. Before you cancel any credit cards, get advice.  And don’t apply for a store card just to save on your purchase that day!
     
  4. Consolidate to drive down debt. If you are carrying a large amount of high-interest debt outside your mortgage, this may be the time to roll that debt into a low-rate mortgage while you can.  This one, smart strategy could save you thousands in interest payments and boost your monthly cash flow. We can analyze your situation to see if you can benefit.
     
  5. Get “Rate Mail”. Many people are sitting on-edge: waiting for a rise in rates that could trigger a wave of activity. Subscribe to our rate updates so you can stay on top of any shifts in the market – and respond quickly.
     
  6. Get ready now for higher rates. No one can predict when rates will start to rise.  If you are buying or renewing now, consider what rates and your mortgage payment might be when you renew. If you can, set your payment up to that higher amount; you’ll avoid payment shock down the road, and pay your mortgage off faster!
     
  7. Speed up your mortgage pay-down. Take every opportunity to beat down your mortgage principal. Build a plan to take advantage of your lender’s prepayment privileges! Consider changing from monthly payments to weekly or bi-weekly payments, and take some or all of your tax refund and put it against your mortgage principal.
     
  8. Reno & roll. The right renovation might be all it takes to turn the house you’re in, into the home of your dreams. It is almost always less expensive to renovate than to relocate – if an upgrade to your lifestyle is what you’re after! We can show you how you can roll large renovation costs into your mortgage, and use your prepayment privileges to pay it off faster.  
     
  9. Get flexibility with a re-advanceable mortgage. This is a brilliant mortgage concept for those who want to pay down their mortgage – but still have flexibility in case it’s needed later. With re-advanceable mortgages, you can access your equity without a fuss should an emergency expense crop up, or an unexpected investment opportunity.
     
  10. Get your annual mortgage checkup. That’s right. Make an appointment so we can check under the hood of your mortgage – to make sure everything’s working as it should. A few tweaks now could pay big dividends in the year ahead!

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