Ways to save on your mortgage in Midland
If you’re feeling a budget crunch, rearrange your mortgage to save money or free up some
Higher rates and prices are hitting Canadian homeowners in the portfolio (mortgage). Whether you’re trying to buy a home or are stressed about your monthly budget, here are some money-saving strategies to optimize your mortgage.
Deposit a lump sum now
Want to get ahead of higher rates? If you’re sitting on pandemic savings, consider spending them on your future self by depositing them into your principal (hopefully you have the flexible options to afford this).
You could save thousands of dollars on interest charges and help provide protection against future rate hikes.
Save more with a conventional mortgage
If you have some spare cash, consider adding it to increase your down payment to 20% of the purchase price of the home. You’ll save on insurance premiums and get a lower mortgage to save thousands of dollars over your first 5-year term and mortgage life.
Change your amortization or payment frequency
Extending your amortization (if you’re a few years old or have a conventional mortgage) can help lower your monthly payments to create fiscal space now to meet other expenses. This convenience means you’ll pay more interest over the life of your mortgage, but with the ability to catch up later.
Some homeowners do the opposite by shortening their amortization to end their mortgage commitment sooner and save a ton of interest. Or increase payment amounts or frequency (for example, moving from a monthly payment to an accelerated payment every two weeks) to further reduce principal and help mitigate the impact of potentially higher rates at renewal time.
Save with a lower rate or upgrade to a better one
Getting your lowest best rate (that you qualify for) is a great way to save thousands of dollars.
If you buy a house and go straight to your bank, you’ll likely pay a higher rate because they’re banking on your loyalty rather than rates. A trusted brokerage, like True North Mortgage (offering salaried brokers, an easy online experience, and store locations), can pass on a volume discount for a lower rate. If you’re looking for a home now, they can hold your best rate to protect you against short-term increases.
And if you originally got a higher rate from your bank and a broker can find a lower one with a better mortgage fit, a switch can help you save. Another option is to switch from a higher fixed rate to a (currently) lower variable rate. However, there are risks to consider, in addition to other ongoing increases (related to Bank of Canada hikes).
Tap into your home equity for low-interest funds
Maybe you need funds to upgrade your home, get a higher education, or pay off higher-interest debt? Even with rising rates, your mortgage is still a low interest means of borrowing compared to credit cards or private loans. If you have equity in your home, an expert broker can determine if refinancing or adding a HELOC will help you save more.
Co-live to co-mortgage
To make your home affordable at your fingertips rather than going it alone, consider multi-generational or co-ownership of a larger home with your family or friends. You will be able to pool your resources for a larger down payment and share other costs, including mortgage payments.
There are qualifying details to consider which a knowledgeable broker can help define.
Access first-time homebuyer programs and rebates
Every potential first time buyer should speak to an experienced broker.
A True North broker is highly skilled, with hours and hours on top of what they already bring to the table in terms of knowledge and experience. In addition to offering a volume rate discount and flexible mortgage options, they can provide targeted advice on discounts and programs to help turn a first mortgage into a solid financial strategy.
Chase your mortgage savings
Better than a big bank or an “online transaction” platform, a highly qualified broker will find your best rate and personalized mortgage to save you thousands of dollars.
Now is the time to determine if your mortgage needs tweaking to create the budget relief you need.
At True North Mortgage, their expert brokers are real people who care. They are ready to provide you with the best service in the industry, at no cost or obligation. Visit their website or apply now.
They are there to help. Canada’s #1 Mortgage Broker