Are you scared of your mortgage renewal and afraid you’ll get a payment shock? Here are some tips to navigate that.
Let’s talk about mortgage renewals. Something like 60% of all mortgages in Canada are coming up for renewal in the next three years. If that’s you, odds are your interest rate is going to be higher than what you’re currently paying, and so you may end up with something called payment shock.
Now, you might get saved if interest rates come down a little bit, but I highly doubt we’re going to have rates in the 2% or even 3% range over the next couple of years. So it’s important to get ready if you’re carrying any extra debts—whether it’s car payments or whatever—try to chip away at those balances now so that you can free up those payments to apply to your mortgage.
One of the important things about mortgage renewals is it’s an opportunity to shop around. Do not take whatever your current lender offers you. Don’t take it without at least giving a mortgage broker, ideally me, a call, to see if your lender is being competitive.
One of the advantages of dealing with brokers is that we have access to all sorts of different lenders. Different lenders have different rates at any given point in time, and there are different economic factors to take into effect. You don’t necessarily want to lock into a 5-year fixed rate if it’s highly likely rates are coming down. So feel free to give me a call. I’m happy to walk you through your renewal, even if you end up staying with your existing lender!
I also have a helpful video about why now is a good time to get a variable-rate mortgage.
About Jason Scott, Edmonton Mortgage Broker
Looking for a personalized mortgage solution? As an Edmonton Mortgage Associate, I’ll be your trusted partner who will help you get the right mortgage for your family home or Investment property. I’m Jason Scott, and I’ll be your Mortgage Broker Edmonton.