As we head into the fall, I am working with many of my clients on their mortgage renewal. You can begin the mortgage renewal process months before your mortgage renewal date.
If you obtained a mortgage when rates were really low and you’re worried about how to prepare your budget and finances for a larger payment, you are not alone.
Here’s a tip to help prepare you for your renewal when rates will likely be higher than your current low cost of borrowing:
Most mortgages come with pre-payment options, by utilizing this option, you can increase your regular mortgage payment every anniversary date, by often 15-20%. These extra payments will be applied directly to the principal, paying your mortgage down faster and saving on interest.
When renewal time comes, you will already be well adjusted to the increased payment and will benefit from a lower remaining mortgage balance.
Need help setting this up? Get in touch!
