With rates over 5%, it is important for everyone to understand 1) their options at renewal, 2) how to prepare for interest rate increases at renewal and 3) how to protect their low interest rate.
Strategies for your fixed rate mortgage:
your Mortgage Maturing next year?
-Increase your monthly payment to reduce payment shock when your mortgage matures.
-You may be sitting on equity in your home that would allow you to refinance for a longer amortization (duration of your mortgage) period thereby reducing your payments.
-If in a good equity position, it may be worth paying out your higher interest debt. It would be beneficial to maintain paying your mortgage.
- We wouldn't recommend making any changes until your maturity date, rates can be held up to 4 months prior to maturity.
2) Did you take a mortgage in 2020, 2021, 2022?
Congratulations you have a great rate and don't need to make any changes! 1-2% interest rates are long gone.
-Consider mortgage payment increases in the future before taking on any long-term personal debt.
-Consider rounding up your payments to reduce your mortgage balance before your maturity date at the same time getting used to higher payments.
-Reduce or eliminate higher interest debt by aggressively paying this debt.
-If you need to access equity before maturity of your mortgage there may be options with your lender.
3) Did you take a mortgage in 2020,
2021, 2022 and looking to move?
-We want to protect your interest rate at all cost! Let’s find out what your porting options are with your lender. Porting meaning taking your mortgage with you to a new property.
Following these strategies and working together, we can find you the best lender, terms, and rate for your current financial situation. Contact one of our Winnipeg Mortgage Brokers today for a no obligation discussion about your mortgage needs.