Spruce Grove Mortgage Broker: Krista Rumberg
 (780) 946-6222   ·    Email

Archives >

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

 

Mortgage Rules After The Federal Budget

The Federal Budget announced new mortgage rules that were not what we were hoping for.

The best part of the new rules allows Canadians to withdraw $35K from their RRSP which is an addition of $10K over the previous $25K. This is awesome for the first time home buyers program – but remember the RRSP’s still need to repaid over time or they become taxable income.

The second portion that was supposed to be relief is confusing to consumers and disappointing. CMHC will now allow a purchaser up to 10% funding for new homes and 5% for existing homes with a household income of up to $120K. A home buyer purchasing a $400,000 home with five per cent down and a five per cent CMHC shared equity mortgage (worth $20,000), would see their mortgage reduced from $380,000 to $360,000, lowering their monthly mortgage bill. Buyers may borrow no more than four times their annual household income. This additional $20K will have to be repaid to CMHC but terms have not yet be laid out. This new program is set to commence in the fall of 2019. In my opinion this does little in our local economy and encourages Canadians to take on more debt…which is not something we need.

We were hoping for a adjustment to the stress test or bringing back 30 year amortization…the silver lining is the feds mentioned that the stress test will continue to be reviewed and we may see changes at a later point in time. Lets keep our figures crossed.

Watch the video snippet of the announcements below:

 

 

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

Is RIGHT NOW A Good Time To Buy?

Is RIGHT NOW a Good Time To Buy A Home?

If you’ve been thinking about buying a new (to you) property for whatever reason, the doom and gloom of the media might cause you to question a little; is right now a good time to buy?

Well…. what if that is the wrong question?

 

Inevitably, one media source will report that housing prices are ready to skyrocket, while at the same time, another news outlet will raise the alarm to brace for the inevitable housing crash of 2019.

The truth is, it’s nearly impossible to know for sure what’s going to happen with the housing market. Even when you check with the local experts, it’s hard to know what is going to happen next week, let alone in years to come. And “advice” from friends doesn’t usually pan out all that well. Instead of basing your buying decision on external market factors, consider asking yourself:

Is now a good time for me to buy a property?

When you stop looking at the market or opinions from others to determine your timing, and instead, examine your reasons for buying a property, the picture becomes much more clear. Here is a tidy list of things you should consider when thinking about buying a property. Although they are subjective, they are things you can control.

  • Does buying a new home now put me in a better financial position?
  • Do I feel comfortable with my current employment status?
  • Do I make enough money now to afford a new home and still be comfortable?
  • Have I saved enough money for a down payment?
  • What is the intended purpose of the property? Is it reasonable?
  • Is there any scenario where I might have to sell quickly and potentially lose money?
  • Do I want to buy, or am I feeling some pressure that if I don’t buy now, I might never be able to?
  • Am I scared that if I buy now, the market will crumble the second I do?

If you’d like someone to walk you through the process and outline your financial options, please get in touch to see what buying a property looks like for you.

 

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

Mortgage Broker Spruce Grove Mortgage Broker Spruce Grove

Next Page »