When it comes to your mortgage, do you want to get ahead? Of course you do! Whether it’s choosing the right mortgage when buying your first home or paying off your current mortgage more quickly, many Canadians are looking for smart ways to find the right mortgage solution and reduce their mortgage debt.
With home prices (and mortgage loan amounts) quadrupling within the last 36 years, ‘getting ahead’ might seem a little more daunting than in the past. However, despite the fact that the average mortgage loan now totals approximately $176 200 (compared to the mere $41,200 in 1982), it is possible. These smart tips will help you out:
For those that currently have a mortgage, this first tip might seem a bit obvious. However, there are strategic ways to pay more towards your mortgage without neglecting any of your other financial responsibilities. The first option Is to take advantage of prepayment privileges. According to the terms and conditions of your mortgage loan, you may be able to add a lump sum payment once a year that is applied directly towards the principal loan amount. Keep in mind, however, that you’ll want to check out the conditions of your mortgage before you make that lump sum payment to avoid encountering any costly penalties.
The second option is to accelerate your payments. Similar to paying more towards your mortgage, you may also be able to change your payment structure in order to help you pay off your mortgage more quickly. For example, if you currently make your mortgage loan payments monthly, switching to a bi-weekly payment structure will mean that you make two extra mortgage payments a year, which can go a long way towards diminishing your mortgage debt.
For those just starting out and searching for the right mortgage, shopping around is sage advice. Although you may get pre-approved for a mortgage loan from your current bank or financial institution, it pays to consider and investigate the other options available – as you might be able to secure approval for a mortgage loan at a lower rate or with terms more suited to your needs.
One of the advantages of working with a mortgage broker is that your broker can actually shop around for you and negotiate the terms of your loan with mortgage lenders on your behalf.
Stay in the know
Finally, in order to get ahead with your mortgage, it’s also important to become informed and ‘stay in the know’. In particular, keep a constant eye on mortgage and interest rates and trends and be mindful of when your mortgage is up for renewal if you do currently have a mortgage loan.
If you are searching for the right mortgage solution or need some guidance and advice on how to pay your mortgage down faster, I can help. As a mortgage broker in Barrie, I specialize in working with my clients to find the right mortgage at the right time. Call me today at (705) 315-0516.