In its latest report, cited in an article by La Presse Canadienne, Statistics Canada confirms a 3.7% decline in household debt over one quarter.
The seasonally adjusted total value of household debt on the credit market in the second quarter reached $2,861 billion. This amount included $2,126 billion in mortgage debt. These staggering figures have prompted us to produce a series of simple recommendations to help you deal with this level of household indebtedness—because you have every incentive to pay less interest.
Using your mortgage as a tool to accelerate debt repayment
Through refinancing—whose process is clearly explained in this blog post—you can use your mortgage to deal with higher-interest debts. In some cases, it is possible to create significant financial flexibility and restructure your payments to give yourself a fresh start financially. Speak with your mortgage broker to get a clearer picture.
Getting the most competitive conditions with a mortgage broker
Many consumers do not have the time, patience, or desire to compare offers from different mortgage lenders. As a result, many renew year after year with their usual financial institution. Here are a few reasons to encourage you to compare available offers:
It can save you money: If you avoid paying a penalty of several thousand dollars when selling your home because you didn’t read the fine print, you could save months or even years of savings toward future projects. A broker works in your interest and reviews your mortgage terms.
It’s free: Our brokers compare more than 200 products across 25 lenders. They are only compensated when the mortgage is signed and conduct a thorough needs analysis to properly represent you to lenders.
Not comparing can cost you thousands of dollars:f you stick with your current financial institution, it is difficult to know whether the renewal offer is truly competitive. Challenge our mortgage professionals—they specialize in mortgage products.
If a lender offers a special promotion, you could miss out on cash-back offers or terms that better suit your needs. Your financial strategy, budgeting, and liability management are all areas where working with a mortgage broker can be beneficial.
Consumers are well protected by the AMF and the mortgage brokerage code of ethics: the certification required for brokers is not mandatory for bank representatives.
Our slogan and commitments remain the same, and the firm has over 40 years of experience in the mortgage industry. This certification requires all brokers to complete ongoing training, stay up to date on products and best practices, and most importantly, act in the client’s best interest rather than the lender’s.
What impact does accelerating mortgage repayment have on your long-term budget?
A Multi-Prêts blog article clearly illustrates the impact of paying down your mortgage faster. It explains in detail the financial effect of accelerating repayment. Even a small additional monthly payment can represent thousands of dollars in savings over the life of the mortgage.