Though it’s a great idea to review your mortgage each year, there is never a better time for a mortgage review than in the year leading up to your renewal.

Take advantage of this point in your mortgage; your wallet will thank you.  Here’s why:

Get a Better Rate: Explore other lenders for preferable interest rates without breaking your mortgage at renewal time. With interest rates expected to start coming down soon, reaching out to explore the market could potentially save you considerably over the next term.

Consolidate Debt: Renewal time is also an excellent opportunity to assess your existing debt and decide whether consolidating it into your mortgage is beneficial. Whether it’s holiday credit card debt, car loans, education loans, or other debts, consolidating your mortgage streamlines your payments into one, potentially at a lower interest rate than through other sources.

Renovations: Renewal time can also provide a great opportunity to tap into home equity for renovations, such as modernizing your kitchen, making bathroom upgrades, or updating your landscaping.

Investing In Other Properties: Home equity can also fund the down payment or outright purchase of a vacation home or investment property.  Or you could use it to help your kids purchase their first home. Whether you’re considering doing this now or in the future, you could always use this time to add a home equity line of credit to your mortgage at renewal.  Whether you use the funds now or in the future, it’s great to plan ahead so you can act on opportunities when they arise.

Planning for Retirement: Adding a line of credit before you retire can help set you up to access the equity in your home after you no longer qualify due to reducing your income from work.  Doing this at renewal will allow you to switch to the lender with the best terms for you without incurring a penalty.

Adjust Your Mortgage To Your Current Needs and a Changing Rate Environment: Switching between fixed and variable rates, shorter or longer terms, or adjusting your amortization to pay less interest, or to lower your payment may also be possible at renewal.

Aligning your mortgage with your future plans, while keeping current circumstances in mind, helps keep you sustainably on track to reach your financial goals.  Feel free to reach out at any time for a complimentary mortgage review.  I’m always happy to help!

Adapted from DLC Marketing

Image Credit: Tyler Nix