Spruce Grove Mortgage Broker: Krista Rumberg
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Retirement With A Mortgage

There’s a chance you read the title to this article and thought “I’m a long way off from retirement”. That’s okay, chances are you know someone (maybe parents or relatives) who could use this information, feel free to pass it along.

If you find yourself in the position thinking about retirement and what options you have with your mortgage, you’ve come to the right place. As an independent mortgage broker, I can provide you with many more options than a traditional bank. You might be closer to retirement than you think, and a good mortgage can certainly help you along the way.

Although it’s ideal to have your mortgage paid off by the time you retire, that isn’t always possible. Especially in today’s economy. More and more Canadians are carrying mortgage debt into retirement, how well they do it relies on the options they have!

Let me outline some options you have:

Standard Mortgage Financing

Standard mortgages work if you’ve got a steady income, decent credit, and equity in your home. There is no reason you shouldn’t qualify for standard mortgage financing. This usually comes at the lowest interest rate and best terms. Even if you’ve already retired, some lenders use pension and retirement income to support your mortgage application.

Reverse Mortgage Financing

A reverse mortgage allows Canadian homeowners 55 years and older to borrow money from their home with no proof of income, no credit check, and no health questions. A reverse mortgage is a fabulous mortgage solution that has helped thousands of older Canadians to enhance their lifestyle.

Home Equity Line of Credit (HELOC)

A line of credit secured to the equity you have in your home is an excellent tool to allow you to access money when you need it, but not pay interest if you don’t. A lot of Canadians like the idea of rolling all their expenses and income into one account.

To figure out which option is best suited to you, contact me directly. Together we can assess your financial situation, put together a mortgage plan, and then see it through.

Questions on your mortgage, or want to compare your mortgage to what is currently available? Please email me.

Mortgage Broker Spruce GroveMortgage Broker Spruce Grove

4 Things You Can Do To Pay Your Mortgage Faster

Although getting a mortgage is exciting as it allows you to become a homeowner, a mortgage is, in fact, a lot of debt. So if you have a mortgage, your goal should be to get rid of it as quickly as possible.

Here are four things you can do to help pay off your mortgage for good!

 

1. Accelerate your payments.

Making the change from monthly payments to accelerated bi-weekly payments is one of the easiest ways you can make a difference to the bottom line of your mortgage. Most people don’t even notice the difference.

A traditional mortgage splits the amount owing to 12 equal monthly payments. Accelerated biweekly is simply taking a regular monthly payment and dividing it in two, but instead of making 24 payments, you make 26. The extra two payments really accelerate the pay down of your mortgage.

2. Increase your regular mortgage payments.

Chances are you have the ability to increase your regular mortgage payment by 10-25%. This is a great option if you have some extra cash flow to spend in your budget. This money will go directly towards paying down the principal amount owing on your mortgage and isn’t a prepayment of interest.

3. Make a lump sum payment.

Depending on your lender and your mortgage product, you should be able to put down anywhere from 10-25% of the original mortgage balance. Some lenders are particular about when you can make these payments, however, if you haven’t taken advantage of a lump sum payment yet this year, you should be eligible.

4. Review your options regularly.

As your mortgage payments are withdrawn from your account on a set schedule, it’s easy to put your mortgage payments on auto-pilot, especially if you have opted for a longer term. This is why an annual review is a good idea, there may be opportunities to refinance and lower your interest rate.

The point of reviewing your mortgage annually is that you are conscious about making decisions regarding your mortgage and that you ensure you’ve always got the best mortgage for you!

Questions on your mortgage, or want to compare your mortgage to what is currently available? Please email me.
Mortgage Broker Spruce GroveMortgage Broker Spruce Grove

Check These 5 Things Before Your Mortgage Renewal

When your mortgage term comes to an end, the next step is to look at your mortgage renewal options. Here are five things you should consider when renewing your mortgage to make sure you pay the least amount of money over your next term, because who doesn’t like saving money?!

Do not simply sign renewal papers with your current lender!

When your renewal papers come in the mail, please understand that your current lender hasn’t offered you the best terms available. Don’t just sign and mail them back, to get the best deal… you need to look at all your options first!

mortgage renewal signing

Interest Rate

Most Canadians think that the lowest interest rate means the best mortgage product. Although sometimes that is true, there are other factors such as fine print. In regards to interest rates, your current bank doesn’t always have the best one. They have the best one that they can offer, but it might not be the best on the market. This is where having a broker in your corner to look at rates and compare with your needs in the next 4 points can help.

Fine Print

A mortgage is more than just an interest rate. You can save yourself a lot of money if you pay attention to the fine print, not only the rate.

Breaking Your Mortgage

This would be one of those fine print details to investigate. If you decide to break your mortgage early, you will inevitably end up paying a penalty. A variable rate will typically cost three months interest to break, whereas breaking a fixed rate mortgage can be significantly more costly as you could incur an interest rate differential penalty.

Fixed VS Variable

Whether you go fixed or variable is a big decision. You must decide whether the rate will be allowed to fluctuate along with the bank’s prime lending rate or whether you want to lock in the rate for the whole term.

Also, consider the term length for each fixed and variable, you have lots of options! 6 months to 10 years!

Mortgage Refinance

When your mortgage is up for renewal, you are in a unique position to refinance your mortgage without incurring a penalty, so make sure you consider this option as well.

So if your mortgage is up for renewal within the next six months, looking at all your options is the best way to make sure you get the best mortgage for you.

 

Questions on your mortgage, or want to compare your mortgage to what is currently available? Please email me.

Spruce Grove Mortgage

Krista Lindstrom

Mortgage Broker

krista@mortgagesimple.ca

780-946-6222

 

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