Are you experiencing sticker shock as your mortgage comes up for renewal? Many Canadian homeowners face this dilemma, where monthly payments that were once manageable suddenly spike by up to 40% as they renew their mortgages. In this article, we’ll explore homeowners’ crucial choice: renew or refinance their mortgage.
Understanding Mortgage Renewal: A Closer Look
Renewing your mortgage involves updating the existing contract with a new term and rate, typically after a 5-year term. However, the shock comes when clients accustomed to paying $2000 monthly for the last five years suddenly find themselves facing payments as high as $2800 or more. It’s a scenario that demands careful consideration and exploration of alternative options.
The Refinancing Advantage: Breaking Free for Financial Flexibility
For those seeking a more strategic approach, refinancing is a powerful option. This involves breaking your current mortgage contract entirely and signing a new one with fresh terms, rates, and amortizations. Refinancing can be beneficial for accessing home equity, consolidating debt, or funding home renovations. However, it’s crucial to be aware that while extending amortizations can lower monthly payments, it will also increase the total interest paid over the life of the mortgage. There can be legal fees and penalties involved in this option as well. Research is important.
Why Mortgage Brokers Matter: Unveiling a World of Options
As homeowners navigate the complex mortgage landscape, those on the hunt for better rates than those offered by their current lender or bank should turn to Mortgage Brokers. Unlike traditional lenders, Brokers have access to a vast network of lenders in the market, providing a plethora of rate and product options. This is a crucial advantage in today’s dynamic mortgage and home-buying environment.
Prairie West Mortgage Group: Your Trusted Partner in Mortgage Solutions
If you find yourself at the crossroads of mortgage renewal or refinancing, Prairie West Mortgage Group is here to guide you. Whether you’re purchasing, renewing, or refinancing, our team of expert Brokers is ready to help you navigate the current mortgage market. Connect with us today, and let us find the best mortgage solution tailored to your individual needs.
Don’t let sticker shock dictate your financial choices. Choose Prairie West Mortgage Group for a seamless journey through the mortgage maze. Your ideal mortgage solution is just a conversation away!