Think about renewing right now. Folks fixed mortgage rates are better than ever. Have you ever in your lifetime had a 5 year fixed rate of 3.39%? We know we haven’t. What an incredible rate. With once again increasing global financial turmoil, borrowing costs could spike up as governments introduce new austerity measures to grapple with spiraling deficits.

It’s an ideal time to batten down the hatches and put your financial footing in a ‘safety’ mode. Plan for the worst and hope for the best as the saying goes. If you have any consumer debt, get rid of it now. Plan for Xmas expenses (pay cash instead of charging), create a nest egg (for an unexpected rainy day event like job loss etc), and do whatever you have to do to weather the storm.

Let’s say your present mortgage is 4.75% and carries a balance of $200,000 with 25 years remaining. Your payment is $1,135 and balance after 5 years will be $176,312. Get 3.39% from us and your payment drops by $148 per month times 60 months equals a savings of $8,880.plus you’re your balance at maturity will be $172,211 putting an additional $4,101 in your pocket for a total of $12,981.

Borrow extra to pay off $7,500 on your credit cards at 19.9% with payments of $225/mth and convert to 3.39% ($37.01/mth), and an extra $25,000 for your new ‘no touch’em’ account (cost is $123.37/mth). Your new mortgage is $232,500 with a payment of $1,147 or only $12.00 a month more than you are paying now. You have gone to safety and you are now financially secure with the lowest interest rate ever for the next 5 years. You have no credit card debt AND you have $25,000 in the bank for an emergency.

Whatever you do, please do not allow yourself to be put into a Collateral Mortgage at a bank, and by all means do not simply sign back your renewal offer without speaking to us first. If you receive a renewal notice, call and tell us what you have been offered and see if we can beat it. Chances are we will and save you thousands of dollars. If your mortgage doesn’t mature soon, but will next year, be proactive and ask your (bank) lender what renewal rate they will give you now, if any. Then call us to compare.

Rate is always important, but what people rarely think to ask about is how any penalty is calculated if they need to break the mortgage. Did you know most Canadians move/sell every 3.5 years. If you have a bank mortgage, your penalty will be high because it is calculated using ‘Posted’ rate, not the discounted rate our lenders penalties are based on. Just last week, we saw a (bank) penalty of $30,000. Wow. If your bank says ‘Posted’ run for the hills. Remember we look out for your best interests, always.