10 Things to Consider Before your Mortgage Renews

1. Have you explored all your options?
Once you receive your mortgage renewal statement, there’s
nothing easier than simply signing on for another term.
But while this may makes ense in many cases, your
family or financial situation may have changed over time.
We can look for opportunities that could better meet your
needs right now.

2. Are you comfortable with your payments?
If you’ve been feeling financially strapped each
month making your mortgage payments, this could be the
time to reduce them to a more easily managed level.
On the other hand, if you’re earning more, why not pay
down your mortgage faster and save thousands of dollars
in interest over time?

3. Do you need cash flow for other things?
Your priorities may haveshifted since you first bought your home,
and your cash flow needs can shift too. Things like paying for a
child’s university education, planning a career change,
or a major purchase such as a vacation property may
call for spending money on things other than your
home. You may be able to refinance your mortgage to
take this into account.

4. Can you handle fluctuating rates?
Some homeowners are nervous about any hikes in
interest rates, while others are comfortable to go with
the flow. Rates are tough to predict. It’s best to base your
decision on your personal situation, not what you read
in the news, and tailor your mortgage renewal around
your needs. We can help you decide whether to opt for
fixed or variable rates — and we don’t want you to lose
any sleep over your decision!
5. Will you sell soon? If you are likely to sell
soon, consider a shorter-term mortgage or one that has
flexible terms so you’re not penalized if you sell your
house before the mortgage comes due.

6.  Are you thinking about a major renovation?
You know that projects such as a new kitchen or
an addition can make your home more valuable. But
the cost of having the work done can tie up a lot of
money. Before you renew, look at all your financing
options, which may include getting an additional line
of credit or keeping your monthly mortgage payments
low so you have money on hand to finance the renos.

7. When do you want to be “mortgage-free”?
If you’re planning extended time away from work or
perhaps an early retirement, it may make sense to pay
down your mortgage sooner rather than later. While
increasing your payments will raise your monthly costs
now, you’ll ultimately save on interest in the long term and
can prepare for that fabulous, mortgage-free lifestyle.

8. Could you use your home equity to fulfill other goals?
 Refinancing a mortgage can be one wayto free up cash you
need for other things, which could even include buying another property.
Mortgage renewal time is an ideal occasion to review all your options.

9. Have your insurance needs changed?
If your financial situation has changed since you first took
out your mortgage, review whether you need the same
level of insurance in place to cover mortgage obligations.

10. Are you getting the best rates and
terms? In a competitive mortgage environment,
your good credit history can make refinancing work to
your advantage. We analyze mortgage markets daily to
ensure you don’t miss any money-saving opportunities.



We have access to the widest variety of
lenders — to find the right solution
for you. We are experts at helping you
achieve your homeownership dreams.
Access your best options!
REFERRALS WELCOME!
 

Denise Benninger,
Mortgage Agent
The Mortgage Wellness Group
Verico 11970
Phone: 519-571-8392
Cell: 519-502-1091
Fax: 1-866-400-0250
Email:
dbenninger@mortgagewellness.ca
Website: www.mymortgagewatch.ca

6 MONTHS TO A BETTER BUDGET

One of the challenges with proper budgeting is that it has to become habitual in order to be effective. You can survive without knowing how to budget if you manage to keep more money coming in rather than going out or have credit cards to cover the gap, but this won't last forever.

Emergency Fund

The crux of this six-month plan is the emergency fund. Ideally, everyone should have at least one or two months' wages sitting in a money market account for any unpleasant surprises. This emergency fund acts as a buffer as the rest of the budget is put in place, and should replace the use of credit cards for emergency situations. You will want to build your emergency fund as quickly as possible. The key is to build the fund at regular intervals, consistently devoting a certain percentage of each paycheck toward it and, if possible, putting in whatever you can spare on top. 

What's an Emergency?

You should only use the emergency money for true emergencies: like when you drive to work but your muffler stays at home. Covering regular purchases like clothes and food do not count, even if you used your credit card to buy them. 

Downsize and Substitute

Now that you have a buffer between you and more high-interest debt, it is time to start the process of downsizing.  It’s odd that the natural solution to "not enough money" seems to be increasing income rather than decreasing spending, but this backwards approach is very familiar to debt counselors. The more space you can create between your expenses and your income, the more income you will have to pay down debt and invest. This can be a process of substitution as much as elimination. For example, if you buy coffee from a fancy coffee shop every morning, you could just as easily purchase a coffee maker with a grinder and make your own, saving more money over the long term.

Focus on Rewards

Another trick that will help your budget come together faster is to focus on the rewards. A mixture of long- and short-term goals will help keep you motivated. This can be as simple as saving for a small luxury, or even something bigger like buying a car with cash. Watching these goals slowly but surely become a reality can be very satisfying and provide further motivation to work harder at your budget.

Find New Sources of Income

Why isn't this the first step? If you simply increase your income without a budget to handle the extra cash properly, the gains tend to slip through the cracks and vanish. Once you have your budget in place and have more money coming in than going out, you can start investing to create more income.

Now, it is possible that it will take you more than six months to get your budget balanced out as it all depends on your situation, including how much or what kind of debt you have. But, even if it does take you longer than six months to get your budget turned around, it is time well spent.