Don’t Let Mortgage Renewals Spook You
In the world of mortgages, where the ever-changing tides of interest rates and financial landscapes can sometimes feel like a turbulent sea, having a trusted guide is priceless. Today, we are thrilled to introduce you to our esteemed mortgage broker, Jeff Attwooll with Equity Care Mortgages** located right here at RE/MAX Twin City Inc. With a wealth of knowledge and experience, Jeff has made it his mission to empower people like you to make informed, confident decisions when it comes to renewing your mortgage. In the ever-changing world of finance, our mortgage rates have been on a bit of a rollercoaster ride. From March 22nd, 2022, to the present, we've seen a steady march upward in mortgage rates. While it may seem like a daunting climb, there's no need to fret. In this blog post, we'll break down what's been happening with mortgage rates and provide some positive and proactive strategies for the future.
Understanding the Journey
In March 2022, the financial landscape was quite different. Five-year fixed rates were sitting at a comfortable 2.99%, while variable rates were an enticing 1.35%. Fast forward to October 2023, and we're witnessing a shift. Five-year fixed rates now range from 5.89% to 6.19%, and variable rates have climbed to 6.25% to 7.10%, depending on the lender.
For many, this surge in rates has raised questions and concerns, especially for those approaching a mortgage renewal. If you're in this boat, rest assured, there are positive steps you can take to navigate this changing landscape.
Planning for Your Mortgage Renewal
Let's consider an example. If you hold a $400,000 mortgage, which is typical for many middle-aged couples, your monthly payment for a variable rate mortgage in March 2022 was a manageable $1,571.01, based on a 25-year amortization. Now, that same payment has increased to $2,583 per month. It's only natural to wonder what's in store and how to best approach your upcoming renewal.
Proactive Strategies
Reach Out Early: If your mortgage renewal is coming up within the next year or sooner, consider this your wake-up call. Reach out to our trusted mortgage agent now. By doing so, you'll gain insight into what your new payments will look like based on current rates, giving you ample time to prepare and budget.
Amortization Adjustment: To mitigate the impact of higher mortgage payments, you can explore the option of re-amortizing your mortgage to the maximum term of 30 years. This can help lower your monthly payments and ease the financial strain.
Looking to the Future
It's important to stay informed about where interest rates are headed. The next Bank of Canada meeting is scheduled for October 25th, 2023, and the outlook is uncertain. There's a 50/50 chance of another prime lending rate increase. Nevertheless, it appears we're nearing the peak of the rate tightening cycle.
Choose Your Path Wisely
For those currently on a variable rate mortgage, holding steady might be a prudent move. Consider riding out the peak with optimism, hoping for more favorable fixed rates in 2024. However, if your renewal is approaching, don't delay. Take control of your financial destiny and don't wait for your lender to reach out.
Conclusion
While the landscape of mortgage rates may be changing, you don't have to face it alone or with trepidation. Reach out to our trusted mortgage advisor today, and take proactive steps to secure your financial future. Remember, with the right approach and mindset, you can navigate the challenges of rising mortgage rates with confidence and optimism. Your financial journey is still full of possibilities and positive opportunities.
**Jeff Attwooll |Mortgage Broker FSCO M08000716
Tel: 519.620.1175 Toll Free: 1.855.620.1175
Cell: 519.498.9447
Equity Care Mortgages . FSCO 12857
VERICO (independently owned and operated)
1400 Bishop St N. Suite 200. Cambridge. ON. N1R 6W8