Mortgage renewals have been making headlines lately, and for good reason. If you're facing a mortgage renewal in the coming months or year, it's natural to be concerned about the impact of higher interest rates on your monthly payments. But don't worry – there are options to ease the potential 'payment shock.' Here are some strategies to consider for your upcoming renewal:
Don't Panic: It's easy to get anxious about rising rates, but understanding their actual impact is crucial. Your payment increase may be less than you expect. For instance, if you had a 5-year fixed-rate mortgage at 2.00% and are renewing at 6.00%, it's a tripling of rates, but your payment would likely increase by only about 40%. Exploring options like extending your amortization can reduce this even further, to under 20%.
Flexible Amortization: Extending your mortgage amortization can reduce monthly payments without jeopardizing your long-term financial security, even if it means paying more interest in the long run.
Adjust Your Budget: Prepare for higher rates by making small changes in your budget. We're here to assist you in creating a budget that aligns with your financial goals, making the renewal process smoother.
Lump-Sum Payment: If you can, consider making a lump-sum payment using investments or cash. We can work with your financial advisor to determine the best approach for your situation.
Explore Lender Options: If your mortgage is insured, it might be worth exploring other lender options. We can guide you through this process, ensuring you meet the necessary criteria.
The Value of a Mortgage Broker: We have access to various lenders and can negotiate on your behalf. Plus, we can lock in a rate for you until the end of your term, providing peace of mind in uncertain times.
Reach Out Today: In times of rising rates, preparing for your mortgage renewal is a proactive step towards securing your financial well-being. I'm here to support you every step of the way. If you have questions, concerns, or want to explore your renewal options further, don't hesitate to reach out. Call me today!