Mortgage Renewal Tip to Lower Monthly Payments
The Bank of Canada has raised interest rates a few times this year. The knee-jerk reaction of the major mortgage lenders has been to raise mortgage rates. As mortgage rates go up, money that was increasing your home equity every month is now redirected to the bank’s vaults.
With every mortgage rate increase, a massive transfer of wealth from homeowners to banks is underway. We are certain of that because the money that was flowing into your pocket every month now goes to the bank.
One way to lower your monthly payments at renewal is to ask the bank to re-amortize your mortgage.
Amortize is what banks call the amount of time it will take for you to pay off your mortgage. Chances are good; you started at 25 years. If it’s been five years and you are up for renewal, the bank will offer you new terms and interest rates for the remaining 20 years.
Re-Amortize means stretching the mortgage back out to 25 years or longer. A lower outstanding balance with a longer repayment period equals lower payments.
Banks do not offer this – you have to ask for it. And keep asking if the person you talk to has no idea what you’re talking about.
You get lower monthly payments that you might need right now. You can always increase payments to offset the longer term you decide to take.
Crunch the numbers or talk to me. I’ll help you. I re-amortized a mortgage on an investment property to increase my monthly cash flow right before covid hit. That extra cushion came in very handy for my tenants and me.
You can also re-amortize in the opposite direction when interest rates drop, and you want to pay off the mortgage quicker.
Do as much of your own homework on mortgages as you can. Unfortunately, the way the mortgage industry is structured, a mortgage agent isn’t always acting in your best interests. I can recommend some good ones for you, though.
Jessy Bilodeau 403 889 6625 jessy@mortgageconnections.com
Meet Jessy, a highly experienced mortgage specialist with over 16 years of experience in the finance industry. With her wealth of knowledge and expertise, Jessy has helped numerous clients secure the necessary financing to realize their dreams of homeownership. As a dedicated professional, Jessy understands the uniqueness of each client’s situation. Whether they are first-time home-buyers or seasoned investors, she provides personalized solutions tailored to each client. Over the course of her career, Jessy has earned a reputation for providing excellent customer service and has been recognized as a top producer for multiple consecutive years. Her expertise in the finance industry, coupled with her passion for helping people, has earned her a loyal following of satisfied customers. If you are looking for a mortgage broker who will work tirelessly to help you achieve your financial goals, look no further than Jessy.