Time for a mortgage tune-up

Like anything in life, a good tune-up can be very beneficial… neglecting your mortgage can affect your current, and future financial situation. By doing an annual assessment of your mortgage will ensure you are making the most of it and, therefore, maximizing it. Here are some obvious signs that your mortgage needs a tune-up:

High interest rate: If you currently have a mortgage with a higher interest rate - case in point, do you have a variable rate mortgage - it may be worth exploring the options. A mortgage broker can provide advice on whether switching to a fix rate mortgage or renegotiating your current mortgage will save you money.

Considering a move or purchasing an investment property: If you're thinking about moving to a new home or purchasing an investment property, a mortgage tune-up can help you assess your financial situation, and determine the best mortgage strategy to reach your goal.

Burden with high-interest debt: Carrying a significant amount of high-interest loans or credit card debt can put a strain on your cash flow. By reviewing your mortgage, you may be able to consolidate your debts, and secure a lower interest rate vis-à-vis those of credit cards or lines of credit thus reducing your overall financial burden. 

Upcoming home renovation or repairs: If you have plans to renovate or to do a home repair project, a mortgage tune-up can help you explore your financing options. This could include accessing equity in your home or securing a home improvement loan to fund your project.

Seizing an investment or business opportunity: If you have an opportunity to invest in a business or make a significant investment say in the market, it's essential to review your mortgage to see if refinancing or adjusting your mortgage terms can provide you with the necessary funds.

Preparing for a large expense: If you anticipate significant expenses in the future, such as tuition fees or wedding costs, a mortgage tune-up can assist you in planning ahead. By exploring options like refinancing or utilizing your home equity, you can ensure you have the financial resources necessary when this time comes.

Mortgage renewal approaching: When your mortgage term is nearing its end, it's an excellent opportunity to reassess your financial goals, and consider your mortgage options. A mortgage tune-up can help you evaluate different lenders, rates, and terms to ensure you make an informed decision when renewing your mortgage.

Change in personal or financial circumstances: If your personal or financial situation has significantly changed since you first obtained your mortgage, such as a job loss, divorce, marriage, or inheritance, it may be beneficial to review your mortgage to ensure it aligns with your current circumstances. 

Shift in long-term financial goals: If your long-term financial goals have changed, such as planning for retirement or starting a business, a mortgage tune-up can help you assess whether your current mortgage aligns with these new objectives and explore alternative options.

Availability of new mortgage products: The mortgage market is constantly evolving, and new products and features may become available that could better suit your needs. A mortgage tune-up allows you to stay updated on the latest offerings, and determine if there are better mortgage solutions for you.

Improvement in credit score: If your credit score has significantly improved since you obtained your mortgage, you may be eligible for better interest rates or terms. A mortgage tune-up can help you take advantage of your improved creditworthiness, and potentially save money on your mortgage.

Concerns about mortgage terms or conditions: If you have concerns or questions about your mortgage terms, conditions, or payment structure, a mortgage tune-up provides an opportunity to seek clarification and potentially make adjustments that better suit your preferences.

If you haven't had a mortgage tune-up in the past year, or if you identify with any of these signs, it may be time to reach out to us, Fred and Martin - Mortgages. It’s free and could save you thousands. 

Fred and Martin