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Don’t wait to ask for help<\/span><\/h2>\n\u201cAs soon as we feel that we are starting to feel a little tighter or that we are wondering about our finances, call your mortgage broker right away,\u201d suggests V\u00e9ronique Caron, mortgage broker at Multi-Pr\u00eats.<\/span><\/p>\nShe points out that mortgage brokers take their clients’ entire budget into account to offer them tailor-made strategies, but that you shouldn’t wait until it’s \u201cone to midnight\u201d.<\/span><\/p>\nConsolidate your debts and integrate them into your mortgage loan<\/span><\/h2>\nConsumer debt often carries higher interest rates than the mortgage rate.\u00a0It is possible to integrate debts into the mortgage loan to amortize them over a longer period and take advantage of a more favorable interest rate in order to reduce monthly payments.<\/span><\/p>\n\u201cConsolidating debt through a mortgage loan is not a stain on the client’s credit.\u00a0[\u2026] On the contrary, it will improve his credit score,\u201d says Ms.\u00a0<\/span>Caron<\/span><\/sup>\u00a0\u00a0.<\/span><\/p>\nConsider converting to a fixed rate loan, in some cases<\/span><\/h2>\nIf you currently have a variable rate mortgage, should you convert it to a fixed rate mortgage?\u00a0The answer is nuanced.<\/span><\/p>\n\u201cIt’s inexpensive to do that,\u201d says Ms.\u00a0<\/span>Caron<\/span><\/sup>\u00a0\u00a0.\u00a0When you have a variable rate, generally speaking, the penalty is three months of interest.\u00a0That said, she points out that this strategy is not right for everyone and that it should be adapted to each person’s situation.<\/span><\/p>\nAn opinion shared by Damien Charbonneau, co-founder and chief operating officer of Nesto, a mortgage loan firm.\u00a0\u201cIf you’re still able to pay your variable rate mortgage and live with a little bit of uncertainty, keep the variable rate.\u00a0But if you are at your absolute limit and if rates continue to rise you would be in a very difficult situation, you can consider the option of transferring to a fixed rate,\u201d he explains.<\/span><\/p>\nExtend the amortization period<\/span><\/h2>\nTypically, new buyers have an amortization period of 25 to 30 years, depending on the amount of their down payment.<\/span><\/p>\nNote that most first-time buyers have a down payment of less than 20%, and their mortgage, insured by Canada Mortgage and Housing Corporation, has a maximum amortization period of 25 years.<\/span><\/p>\nIf you are still able to request an extension, it is possible to do so when renewing your loan in order to reduce monthly payments.<\/span><\/p>\nIf you do it with the same lender, you have “the opportunity to avoid the penalty in part or in whole, at the discretion of the lender,” says Mr. Charbonneau.\u00a0In the long run, you’ll pay more interest, but you could always adjust your amortization down later.<\/span><\/p>\nShop around with your lender for renewal<\/span><\/h2>\n\u201cAt the end of each term, the owner has the opportunity to shop around and change lenders without penalty,\u201d recalls Mr. Charbonneau.<\/span><\/p>\nThe vast majority of people choose the same lender out of convenience, he notes.\u00a0\u201cBut in the current context, with the rates which have increased enormously, it will really be worth investing the time.\u00a0Invest time to learn about your options.\u00a0\u00bb<\/span><\/p>\nIt is not without effort, of course.\u00a0\u201cTransferring from one lender to another will require you to apply for a mortgage, provide up-to-date documents\u2026 But it can really be worth it,\u201d points out Mr. Charbonneau.<\/span><\/p>\nV\u00e9ronique Caron agrees and suggests looking beyond rates: \u201cThe choice of bank will be even more important.\u00a0She insists that her clients are not captive to their financial institution.\u00a0Things to watch out for: the monthly fees charged by some banks for a bank account or a home equity line of credit, whether it is used or not.<\/span><\/p>\nOther bulk ideas<\/span><\/h2>\nEasier said than done: getting your budget in order and getting rid of non-essential expenses can help free up some wiggle room.<\/span><\/p>\nAlso, if you’re about to go on vacation this summer, plan your spending so you don’t get caught off guard and sink into debt\u00a0<\/span>\u2014<\/span>\u00a0which will only add further pressure to your existing mortgage.<\/span><\/p>\nOr, if you have a room available in your property, hosting a roommate could take some of the mortgage financial burden off you.<\/span><\/p>\n <\/p>\n
Source :<\/strong> Article by Cl\u00e9mence Pavic on the ledevoir.com on the 12th july of 2023<\/a><\/p>\n
She points out that mortgage brokers take their clients’ entire budget into account to offer them tailor-made strategies, but that you shouldn’t wait until it’s \u201cone to midnight\u201d.<\/span><\/p>\n Consumer debt often carries higher interest rates than the mortgage rate.\u00a0It is possible to integrate debts into the mortgage loan to amortize them over a longer period and take advantage of a more favorable interest rate in order to reduce monthly payments.<\/span><\/p>\n \u201cConsolidating debt through a mortgage loan is not a stain on the client’s credit.\u00a0[\u2026] On the contrary, it will improve his credit score,\u201d says Ms.\u00a0<\/span>Caron<\/span><\/sup>\u00a0\u00a0.<\/span><\/p>\n If you currently have a variable rate mortgage, should you convert it to a fixed rate mortgage?\u00a0The answer is nuanced.<\/span><\/p>\n \u201cIt’s inexpensive to do that,\u201d says Ms.\u00a0<\/span>Caron<\/span><\/sup>\u00a0\u00a0.\u00a0When you have a variable rate, generally speaking, the penalty is three months of interest.\u00a0That said, she points out that this strategy is not right for everyone and that it should be adapted to each person’s situation.<\/span><\/p>\n An opinion shared by Damien Charbonneau, co-founder and chief operating officer of Nesto, a mortgage loan firm.\u00a0\u201cIf you’re still able to pay your variable rate mortgage and live with a little bit of uncertainty, keep the variable rate.\u00a0But if you are at your absolute limit and if rates continue to rise you would be in a very difficult situation, you can consider the option of transferring to a fixed rate,\u201d he explains.<\/span><\/p>\n Typically, new buyers have an amortization period of 25 to 30 years, depending on the amount of their down payment.<\/span><\/p>\n Note that most first-time buyers have a down payment of less than 20%, and their mortgage, insured by Canada Mortgage and Housing Corporation, has a maximum amortization period of 25 years.<\/span><\/p>\n If you are still able to request an extension, it is possible to do so when renewing your loan in order to reduce monthly payments.<\/span><\/p>\n If you do it with the same lender, you have “the opportunity to avoid the penalty in part or in whole, at the discretion of the lender,” says Mr. Charbonneau.\u00a0In the long run, you’ll pay more interest, but you could always adjust your amortization down later.<\/span><\/p>\n \u201cAt the end of each term, the owner has the opportunity to shop around and change lenders without penalty,\u201d recalls Mr. Charbonneau.<\/span><\/p>\n The vast majority of people choose the same lender out of convenience, he notes.\u00a0\u201cBut in the current context, with the rates which have increased enormously, it will really be worth investing the time.\u00a0Invest time to learn about your options.\u00a0\u00bb<\/span><\/p>\n It is not without effort, of course.\u00a0\u201cTransferring from one lender to another will require you to apply for a mortgage, provide up-to-date documents\u2026 But it can really be worth it,\u201d points out Mr. Charbonneau.<\/span><\/p>\n V\u00e9ronique Caron agrees and suggests looking beyond rates: \u201cThe choice of bank will be even more important.\u00a0She insists that her clients are not captive to their financial institution.\u00a0Things to watch out for: the monthly fees charged by some banks for a bank account or a home equity line of credit, whether it is used or not.<\/span><\/p>\n Easier said than done: getting your budget in order and getting rid of non-essential expenses can help free up some wiggle room.<\/span><\/p>\n Also, if you’re about to go on vacation this summer, plan your spending so you don’t get caught off guard and sink into debt\u00a0<\/span>\u2014<\/span>\u00a0which will only add further pressure to your existing mortgage.<\/span><\/p>\n Or, if you have a room available in your property, hosting a roommate could take some of the mortgage financial burden off you.<\/span><\/p>\n <\/p>\n Source :<\/strong> Article by Cl\u00e9mence Pavic on the ledevoir.com on the 12th july of 2023<\/a><\/p>\nConsolidate your debts and integrate them into your mortgage loan<\/span><\/h2>\n
Consider converting to a fixed rate loan, in some cases<\/span><\/h2>\n
Extend the amortization period<\/span><\/h2>\n
Shop around with your lender for renewal<\/span><\/h2>\n
Other bulk ideas<\/span><\/h2>\n
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