Review your mortgage today

There has never been a better time to review your current mortgage particularly with the new rules that will require a stress test for all mortgages.

Life changes, families grow, job’s move, retirement objectives shift. There are any number of reasons why your mortgage and possibly your entire financial picture should be evaluated from year to year. Maybe there are no changes needed but if there are, it’s better to identify them early.

The mortgage that you signed up for a few years ago may no longer be the best fit for you. Doing a financial check-up is a very smart thing to do annually. Many often just wait for the renewal letter before they look at their mortgage and then go back to their current lender without considering whether that mortgage meets their current needs.

Here are some reasons why you should be reviewing your mortgage today – before the new mortgage rules are implemented.

Your mortgage is up for renewal in the next six months

Mortgage renewals in particular are one of the most neglected decisions made during the life of a mortgage. Many homeowners stay with their existing mortgage lender because they believe it is too time consuming to shop around for a better rate. Or, they simply think that the offer from their existing bank is the best deal available. Unfortunately, that is not correct! 

Bank renewal rates are extremely high because most people unfortunately do not take the time to shop around at renewal time. The reality is,you are not going to take the same care and diligence that you did when you first took out your mortgage.

As a result there is very little incentive for the bank to offer you their best rate at renewal time. They are really hoping that you will just sign the renewal notice you receive in the mail and be done with it.

You have high interest credit card debt

There are great possibilities for real savings by using the equity in your home as a debt consolidation tool.

The most attractive reason for consolidating debt into a mortgage is that there will definitely be savings simply by lowering the interest rate you are paying on your debt. Another reason would be to lower your monthly payments.

This could free up cash flow to start investing and saving for retirement.

You are planning for home renovations

If you are planning a renovation soon, use the equity in your home by refinancing your current mortgage to take advantage of today’s low interest rates. You can spread out the repayment over a longer period of time and use funds at rates that are lower than a credit card or unsecured line of credit.

There are so many things that a mortgage can do for you. It can help you become more tax efficient, build wealth for retirement, renovate your home, consolidate high interest credit card debt or perhaps invest in a business and so much more.

Don’t wait for your mortgage to come up for renewal and don’t wait until after you have made a major change in your personal situation. By reviewing annually you will ensure you stay financially fit and ahead of these mortgage rule changes.

These new mortgage qualifying rules could definitely hinder some of your future plans so please give me a call at 888-561-2679 or email [email protected] for a no obligation review of your mortgage.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.