While the interest rate is certainly one factor in a mortgage decision, it should never be the only thing to consider. Here are six other things that can save you money and future potential hassle:
1. Review your circumstances
Make sure your mortgage fits your budget and your lifestyle. Even if you already have a mortgage, things change, so it’s always a good idea to review your mortgage needs on a regular basis. Finding the right mortgage for you can mean saving you money and possible hassles in the future.
2. Consider switching your payment frequency
Accelerated biweekly or weekly payments can knock almost 20 per cent off your total mortgage costs – and you can be mortgage-free sooner. Review your budget to see if you can comfortably change your payment frequency.
3. Know your prepayment options
Does your mortgage contract let you make extra payments without penalty? Additional payments can make a big difference. Remember that if you sell your home, there could also be a penalty for paying off your mortgage early, depending on your mortgage – so don’t be caught by surprise. Know your options so you can plan for your future.
4. Take a look at your amortization
If your budget permits, consider shortening your amortization on your mortgage. This way, you will end up paying less interest on your mortgage (shorter terms = less interest costs).
On the other hand, a longer amortization period on your mortgage means lower, more affordable payments (longer terms = lower payments).
5. Compare fixed vs variable rates
With a fixed rate, you have the comfort of knowing exactly what your mortgage payments will be. Variable rate, however, works to your advantage if the interest rates go down. This option would depend on your comfort level and affordability. We can help you figure out what’s best for you.
6. Find a trusted professional partner
A mortgage should be more than just your signature on a piece of paper. We place a lot of importance on our ongoing relationship with you. Our advisors get to know you so they can recommend the right options to meet your unique
situation. We’re here to help.
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