Renewal & Refinance

Don’t renew your mortgage in the dark.

At renewal, you can renegotiate everything pertaining to your mortgage – amortization, rate, term etc. with no penalties. Your lender will be interested in seeing you come back, but it’s important to investigate your options and make sure you are getting the best possible deal.

A major financial institution’s consumer debt survey found two-thirds (65%) of homeowners did not compare mortgages from more than one lender when they last renewed.* In fact, 20% stayed with their current lender after maturity and did not negotiate; several banks will auto-renew you at posted rates versus fully discounted rates, which can be a difference of hundreds of dollars a month. Don’t renew your mortgage with your eyes closed!

Mortgage renewal is also an important time to decide if you should roll your high-interest credit cards and other debt into your mortgage to get one lower payment, boost your cash flow, and save on interest costs. Or perhaps it’s a good time to take some equity out for renovations, a second property or for investing.

I work for you and am in touch with a wide variety of lenders so we can always make sure you are in the best position possible. When you are six months from renewal, be sure to contact me so we can review all of your options and strategies, not just those presented by your current lender.

There are some great options out there – from a wide range of lenders; let me help you look around.

*Manulife Bank of Canada 2011 survey.

Lower your debt boost your monthly cash flow and be mortgage-free quicker.

If you’re carrying high-interest credit card debt that has caused your cash flow to slow to a trickle, you owe it to your financial future to have a conversation about how you can roll that debt into your mortgage so you can save – sometimes thousands in interest – and start building wealth. Worried about penalties? Don’t think it can make much difference? Think again. Using today’s historically low mortgage rates, you have a golden opportunity to give yourself a tremendous financial boost. By using your home equity to consolidate your debt, you can improve monthly cash flow, have one easy payment, and be mortgage-free quicker,

Look at this example from a recent client (mortgage, car loan and credit cards totaled $225,000; we rolled that debt into a new $233,000 mortgage, which included a fee to break the existing mortgage):

Monthly Payments
Total Debt Current New
Mortgage $175,000 $ 969 $1,163
Car Loan $ 25,000 $ 495 $ 0
All Credit Cards $ 25,000 $ 655 $ 0
Total $2,119 $1,163

That’s $956 LESS each month!

Make this the start of a new financial life. I’d love to help you crunch some numbers to see what kind of life you could be living! Talk to me about scheduling a free, no-obligation review of your situation. I guarantee you’ll be glad you did.

+4.5% current mortgage, 3.5% new mortgage. Credit cards 19.5% and car loan 7%, both 5 yr am. Subject to change. OAC. For illustration purposes only.

No matter your situation my consultation to you is a free service. You have nothing to lose by contacting me.

Sincerely,

Mike Parker

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