Your mortgage renewal is an opportunity to optimize long term interest savings and address current cash flow.  Some of the items to explore as you evaluate your options include:

Fixed vs. Variable Rates:

• Assessing your risk tolerance: Fixed rates can provide stability, while variable rates fluctuate. However, fixed rates can come with their own inherent risk: penalties. Depending on the lender and the direction rates are trending, the penalty on fixed rate mortgages can vary widely.
• Reviewing the current economic climate: Rates are forecasted to come down, making variable rates more attractive again to those with a comfort with relying on those forecasts in making rate decisions.
• Variable rate payment options: Not all variable rate mortgages work the same way. Some have fixed payments, and some have payments fluctuating with the prime rate.  Both have implications as rates move and each should be considered against interest rate forecasts and personal perspectives when making a selection.
• Consider Term Length: Forecasts may influence how long of a term you select at renewal as well.

Adjusting Payments:

• Exploring flexible payment options: The ability to adjust your payment frequency or making lump sum payments should align with your financial goals, future opportunities and potential rate climate as it evolves.
• Considering budget changes: If your financial situation has evolved or will be in the future, adjusting your payments accordingly can be a strategic move. From adjusting payment frequency to changes in amortization, you may have multiple options to choose from to address your budget and future plans.

Consolidating Other Debt:

• Evaluating high-interest debt: Use the renewal as an opportunity to consolidate high-interest debts into your mortgage. This can simplify payments and potentially save on interest.

Selecting a New Lender or Staying With Your Current One:

• Weighing your options: Never settle for your lender’s first offer without exploring your options with me first ensuring you’ve received personalized advice tailored to your unique situation as interest rate forecasts shift.

Your mortgage renewal is not just an exercise in paperwork; it’s a chance to align your mortgage now with your financial goals. Considering these factors, interest rate forecasts, and your future plans can pay off both in the short and long term.  Reach out today with any questions you may have, I’m always happy to help.

Image: Joshua Hibbert on Unsplash