1. IS YOUR MORTGAGE UP FOR RENEWAL IN THE NEXT 2 TO 3 YEARS?
If you’re halfway into your mortgage term, it may be a good idea to start thinking ahead. While we’ve had rate cuts recently, you may be sitting in a high fixed rate mortgage. If you’re in a variable rate, then you’re benefiting from the cuts, either way, having a mortgage review makes sense. You may want to refinance to consolidate debt, or you may wish to access your equity to invest. There’s no cost to get an opinion from a mortgage professional if you are thinking of making a significant decision about your finances.
2. ARE YOU PLANNING ON STARTING YOUR OWN BUSINESS ANYTIME SOON?
It’s harder to qualify for a mortgage when you're newly self-employed. If you're planning on making changes to your mortgage, you may want to take action soon while you are still able to qualify with third-party income confirmation. Accessing available equity to use as a cushion while building your business or restructuring your mortgage to lower payments could make sense as well; however, be aware that refinancing can come with some costs. It’s important to talk to a mortgage professional who can offer financing alternatives for self-employed borrowers.
3. YOUR HOME EQUITY LINE OF CREDIT (HELOC) BALANCE HASN’T DECREASED
If you have HELOC and the balance isn’t going down as fast as you’d like, have you considered converting your revolving credit line into a mortgage? This will provide you with a set amortization period which will let you pay off the balance in full. You will also have a fixed payment schedule.
4. DO YOU OWE MORE THAN YOUR HOME IS WORTH?
There may be options. This scenario involves a more in-depth consultation; however, there are a few options that can get you going on the right path.
5. HAS YOUR CREDIT SCORE CHANGED FOR THE BETTER?
If you originally got a higher interest rate mortgage because your credit report was showing an unfavourable rating, then it's time for a review. An improved credit score may qualify you for a lower interest rate, saving you precious dollars every month. It’s time to contact a mortgage professional for some valuable advice.
6. ARE YOU MOVING SOON?
Most mortgages are portable, which means you can “port” the terms to your new home so that you can take your great rate with you. However, some guidelines determine portability eligibility, and it’s important to read the fine print of your mortgage commitment, there may be possible payout penalties. An experienced mortgage professional can provide you with an amortization schedule that lets you see a potential impact. It might be better financially to take out a new mortgage.
It doesn’t take long to determine if your mortgage is in need of a makeover. If you answered yes to any of the above questions a mortgage consultation makes sense. It’s the perfect time to ask questions and get answers so you can make an informed decision.