What happens when your mortgage matures? It’s good to know exactly what you need to think about as time goes on. So here are ten things you need to consider before your mortgage matures.
1) Have you explored all your options?
Once you receive your mortgage renewal statement, the simplest option is just to sign with your present lender. In fact 70% of people do exactly that. Your family and financial situation may have changed and you may want to explore other options.
2) Are you comfortable with your current payments?
Your income may have increased or you may find your current payments too high. Mortgage renewal time is the perfect time to explore your options when your financial situation has changed.
3) Do you need cash flow?
Home renovations and planning your child’s education or some other major purchase might have you wondering how you will finance it. With today’s current market value you may be able to access additional equity in your home.
4) Fluctuating rates
Some homeowners are comfortable with the ebb and flow of rates while some are not. Your decision should be based on your personal situation and if you can live with an increase in lending rates.
5) Thinking of selling
If you plan to sell in the near future then consider a shorter term with manageable terms if you do decide to sell.
6) Are you thinking of a major renovation
Upgrades can increase the value of your home but can tie up a lot of your financial resources. Make sure you allow for enough resources to complete the project.
7) Do you want to be mortgage free
Increasing your mortgage payments will increase your monthly expenses now but save you thousands in interest over time. Becoming mortgage free could be sooner than you might think.
8) Putting your home equity to work
Refinancing your mortgage can free up money for other things including purchasing another property.
9) Have your insurance needs changed
If your home equity has increased you may not need default insurance any longer.
10) Are you getting the best terms and rates possible
In a competitive mortgage environment your good credit history can get you the best rates possible. As your Toronto mortgage broker I analyze mortgage rates daily and can get you the best rates possible.
If you have any another questions regarding mortgages, contact me today.
