Reviewing your mortgage is important

May 1, 2025

Many have been encouraged with lower mortgage rates, depending on when you acquired your mortgage. Have you considered what happens to mortgage rates and how a household’s expenses increase when these interest rates rise?

Some mortgage thoughts to ponder:

  1. Variable mortgages. Variable-rate mortgages can be a good option when interest rates decline in the short term. And they can be risky if rates rise. Ask your mortgage advisor what mortgage plan suits your needs.
  2. When it’s time to renew your mortgage. Consider that you can work with an independent mortgage expert to save money. Watch for the letter from your mortgage provider that tells you it’s time to renew, or notices from your financial institution.
  3. Pay your bills and credit cards on time. Even if phone company bills are unpaid, they can be on your Equifax report. When applying for a new mortgage, your lender can check your credit score to ensure you appear in good standing as a responsible borrower.
  4. Don’t apply for credit everywhere. Avoid signing up for store credit cards, as these applications can trigger a credit inquiry. Too many inquiries can make it look like you’re strapped for cash flow.
  5. Mortgage HELOC debt versus total debt. High-interest debt can be rolled into your mortgage if the interest rate is lower than that of your other loans. Plus, you may be able to include renovation costs in your new mortgage. Just be careful not to increase your HELOC (home equity line of credit) ratio to a level close to your home’s value. There is always a temptation to use up your equity. Note: Talk to your mortgage advisor about the pros and cons of raising a HELOC debt tied to your home, especially if home values decrease dramatically or bankruptcy occurs.
  6. Know your mortgage prepayment penalty. To get out of your mortgage early, the right mortgage with a lower penalty could save you a lot of money! Compare these penalties when shopping for your new mortgage with your mortgage expert.
  7. View mortgage pay-downs as an investment. A pay-down will pay it forward into your net worth. Thus, prepayment privileges are essential! If you make monthly payments, consider paying your mortgage weekly or biweekly to reduce the amortization period.
  8. Give your mortgage an annual checkup. Keep your mortgage healthy – give it a yearly checkup. Even a minor tweak can better position your real estate planning.

 

 

Publisher's Copyright & Legal Use Disclaimer

All articles are a legal copyright of Adviceon®Media.

The particulars contained herein were obtained from sources which we believe are reliable, but are not guaranteed by us and may be incomplete. This website is not deemed to be used as a solicitation in a jurisdiction where this representative is not registered. This content is not intended to provide specific personalized advice, including, without limitation, investment, insurance, financial, legal, accounting or tax advice; and any reference to facts and data provided are from various sources believed to be reliable, but we cannot guarantee they are complete or accurate; and it is intended primarily for Canadian residents only, and the information contained herein is subject to change without notice. References in this Web site to third party goods or services should not be regarded as an endorsement, offer or solicitation of these or any goods or services. Always consult an appropriate professional regarding your particular circumstances before making any financial decision.

Mutual Funds and/or Segregated Funds Disclaimer

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investment funds, including segregated fund investments. Please read the fund summary information folder prospectus before investing. Mutual Funds and/or Segregated Funds may not be guaranteed, their market value changes daily and past performance is not indicative of future results. The publisher does not guarantee the accuracy and will not be held liable in any way for any error, or omission, or any financial decision. Talk to your advisor before making any financial decision. A description of the key features of the applicable individual variable annuity contract or segregated fund is contained in the Information Folder. Any amount that is allocated to a segregated fund is invested at the risk of the contract holder and may increase or decrease in value. Product features are subject to change.