Special mortgage file in La Presse “Strategies to ease the pressure” A Multi-Prêts mortgage broker shares strategies and techniques to reduce the impact of rising costs on your household budget.
The article outlines seven different strategies to help you secure the most suitable mortgage solution. Of course, there are many more strategies that could be offered to households during mortgage renewal. The simplest way to ensure no detail is overlooked is to contact one of our experienced brokers so they can guide you. Remember that the support provided by your broker is free of charge.
1. Anticipate your mortgage renewal
Getting ahead of your renewal is essential to avoid leaving anything to chance. For example, if you plan to sell a few months after your mortgage term ends, a broker may suggest a term with lower penalties. Without planning ahead, you may find yourself in a weaker negotiating position, which can affect your leverage in the mortgage market.
2. Protect your rate
This lesser-known tip could save you significant money over time. For instance, if your renewal is next year and you haven’t started any steps yet, some lenders allow you to lock in a rate for up to 120 days. If rates rise between the time you lock in your rate and your purchase, you are protected. If rates decrease, you may still be able to choose the better option at the time of signing.
3. Compare and review regularly
After locking in your rate, monitoring the market remains important. If another institution offers a better promotion, you should consider it or renegotiate with your current lender if conditions become more favourable. You are not required to handle comparisons yourself—you can mandate a broker to do it and negotiate on your behalf.
It is worth noting that nearly 70% of borrowers renew with their existing lender without comparing other options, potentially leaving thousands of dollars on the table. Our brokers compare more than 200 mortgage products for you.
4. Choose the right product for your goals and risk tolerance
Fixed or variable? What fits your budget? Multi-Prêts brokers compare more than 200 mortgage products from 25 lenders. Choosing a mortgage is complex, and it’s not just about the interest rate—many other conditions must be evaluated.
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5. Budgeting
If your debt level is beyond your comfort zone, it may be time to speak with your broker. Debt restructuring is one of the tools available. In many cases, higher-interest debts can be consolidated into a mortgage to significantly reduce monthly payments.
6. Use your property’s increased value as leverage
Recent property value appreciation may provide financial flexibility. Some homeowners can use their equity to secure additional financing, particularly to consolidate debt or achieve other financial goals.
7. Extend your mortgage amortization
If payments become too heavy, you may be able to extend your amortization to ease monthly pressure. However, this comes with a cost: a longer amortization period means paying more interest over time.
Your mortgage broker is your best ally at renewal
When you are searching for the best rate and conditions, contact your mortgage broker. They are regulated by the Autorité des marchés financiers and work in your best interest. They can access and compare more than 200 mortgage products to find the right solution for you.
If you are unsure about your mortgage strategy and renewal stress is increasing, a simple call or email could potentially save you thousands of dollars in interest and significantly reduce financial pressure as your term approaches.