Renewals

As an experienced homeowner and borrower, you are probably already familiar with the mortgage products and services of your current lender. It could be to your advantage to use another lender. Contact Maria today to help you make the switch. As well, here's some important information to keep in mind:

The form you have from the lender who did your previous mortgage financing has a rate that probably is not as competitive as it could be. Don't let the hassle from the first time you negotiated cause you to just sign the form and send it back to the lender -- it will probably cost you in the form of higher rates.

Lenders count on 70% of renewers to just sign the form and mail it in -- they are not forcing you -- but they are preying on human nature to embrace convenience. Instead, let Maria do the work for you - you get the same convenience, at a much lower cost and a product and terms that will suit your current situation.

Today, more than ever, there are numerous mortgage options available and they change frequently. Maria can help you find the best product for your needs and negotiate the best rate. They do the research for you and explain the available options, enabling you to avoid the frustration and confusion of having to do it yourself.

Fixed Rate:  There are 6 month, 1,2,3,4,5,7,10,18, and 25 year terms available, some are open, some closed, and some convertible.  Fixed rate terms are driven by the Government of Canada Bond yields.  Locking into a longer term (4 years and longer)   will generally give you the better rates as of late, and prevent exposure to rate increases.  You will have the comfort of knowing what your payments will be so you can budget accordingly.

Variable Rate:  3,4, and 5 year open, closed-convertible and some capped .  Most variables are related to Prime rate which is driven by the Bank of Canada rate.  As the rate floats with Prime rate, there is a certain amount of risk involved.  If fixed rates are declining, your will have the option of locking in to a longer term at a later date.  The risk is that a sudden upward rate movement can have a significant impact on your payments.

Split Term: These are combination of all possible terms. This product allows you to minimize or hedge your interest rate risk by splitting your mortgage into various terms and products.

Pre-Payment Options:  Many lenders allow you to make a lump sum payment- usually 10% to 20% of the original principal balance per year.  In addition, many mortgage products include other features such as double-up and skip a payment.

Payment Changes:  Most mortgages allow the amortization to be adjusted by increasing the payment on closed terms by 10% to 20% per year, once annually.

Payment Frequency:  Most mortgages come with the option to pay your mortgage at a frequency that will match your cash flow weekly, bi-weekly, or semi-monthly. The added benefit of the "accelerated" weekly and bi-weekly payments is that by dividing a regular monthly payment into two or four respectively, and deducting it at the new interval, an extra payment a year is made directly against principal. The effect of this one extra payment a year is to reduce the amortization of the average mortgage by approximately 5 years, with tremendous cash savings at the end of the mortgage term.