I love the New Year
I love the New Year; it means new beginnings and fresh starts. There are a lot of positives to focus on in 2021. Maybe you have child a graduating, moving out on their own or getting married. You might be thinking about retiring or looking at what you need to do to prepare for retirement. Maybe you are considering purchasing a new home, purchasing your first home or refinancing your existing mortgage. No matter what your future plans are or how far down the road these plans are.
Its always a good idea to talk to a professional about your choices going forward. This can help you make the right decisions. Here is some information about mortgage brokers and how they can help you. In years past people went to a mortgage broker when they could not qualify for a mortgage through regular channels (the Major banks) For many years people just went to the bank and got their mortgage at what ever rate that the bank was doing at the time. Most people did not know that you could negotiate something better. But there is a cost to doing that which I can explain better in person. Then at the end of their term the bank sent them their renewal form and they signed it at what ever that rate was and again they never tried to negotiate something better.
Usually, with a broker you can have an appointment within 24 hours at times that are convenient to you. After work, evenings, weekends, holidays. The mortgages I am able to obtain have all of the same terms and conditions as a normal bank mortgage. Examples of that are increasing your monthly payments by 20% and applying a 20% lump sum payment to the balance, paying weekly, Bi-Weekly, semi-monthly or monthly.
Now when you go to a mortgage broker, that person finds you the best mortgage for your purpose. You are offered the best rate right up front, and conditions that work best for your situation. The best part is that there is no cost for my service I in most cases, I am paid by the Lender that does the mortgage OAC I have been doing mortgages and selling real estate since 1992 so I have a lot of experience in both fields. It is nice when I can prepare my clients for what to expect, that way we can save you from the disappointments.
Did you know that a 5 year fixed term mortgage right now are running between 1.69% and 2.04% (as at Jan 1,2020) OAC. So, if you are refinancing and you have to pay a penalty it is definitely worth doing. The costs (penalty, appraisal, notary fees) can all be added back into the mortgage. I am finding right now if I add 40 to 50,000 worth of debt into the mortgage my client’s payments are the same or less than what they are currently paying. You then only have one payment. With house prices at an all time high and rates at an all time low it makes sense to look at the future. Right now, you could top up your RRSP’s take equity out for a new car, home renovations, build that garage that you wish you had. The list is endless. Investing in your home will usually make you money over time.
