10 Tips To Keep your Mortgage on Track in 2015
1) Be aware of how much mortgage principle you are paying
Make the most of online banking to keep your eye on your mortgage principle balance. Once you get past the first year you will be paying slightly less interest each month and watching this amount steadily reduce with each payment can be a great incentive to paying off your mortgage more quickly. It will also help to keep you focused on the long-term picture and may inspire you to opt for pre-payment options to reduce your mortgage still further that otherwise you might have chosen to ignore.
2) Be sure to take advantage of any pre-payment options
By this we mean annual payment increases, double up payments and principle payments (some lenders will let reduce your mortgage balance by as much as 20% annually without incurring penalties). Opting for any of these or other types of pre-payment options will substantially reduce the amount of interest you pay in the long run and mean you pay off your mortgage sooner.
3) Make good use of any bonus you receive
Why not plan to use a percentage of each bonus towards making an extra mortgage payment? Even making just one additional payment each year can make a significant difference to the total interest you pay over the long term and will also take years off your mortgage amortization.
4) Don't abuse your line of credit
Many home equity mortgages come with a line of credit that allows you to dip in to extra funds when needed. Make a personal pledge to only make use of this for emergencies and unexpected expenses and not to use it to fund vacations (or Christmas 2015?). Why increase your debt when with a little forward planning it may not be necessary.
5) Take advantage of the post-Christmas period to get the most out of your mortgage advisor
This is our quiet time of year when many people are still reeling from the financial effects of Christmas and are not yet looking to make a move. The January-March period is the ideal time to consult with our mortgage brokers who will be able to give you even more attention and find you all those extra special deals that typically arise late winter to provide an incentive to potential buyers.
6) Don't wait for spring to start looking for your new property!
The closer we get to spring in Montreal, the more people become interested in moving home or office. Make the most of this quiet post-Christmas time on the property market to both find your ideal home and get the very best mortgage deals.
7) Home looking shabby – what about renovating in 2015?
Having a houseful of family and/or guests over the holiday period may have made you aware of some areas in your home that need a little work to keep them both comfortable and looking good. Would 2015 be a good time to re-decorate or renovate in some way? What about planning a landscaping overhaul so that you can make the most of your outdoor spaces when the warmer months arrive? Your mortgage broker can advise on how best to raise the financing with the minimum of interest.
8) Do you need to down-size or up-size in 2015?
Once your family and guests leave after the holidays you may realize that your home is now too big for your needs. Moving to a smaller property can help to reduce or even eliminate debt and create a larger cash flow that will allow you more freedom to indulge your dreams! Conversely, having guests may have made you realize that you need a bigger place! Late winter in Montreal is a great time to get the undivided attention of your mortgage broker and to take the first steps towards up-grading with mortgage pre-approval.
9) Be aware of when you need to renew your mortgage
If possible, you need to plan ahead by talking to a mortgage broker or advisor at least 6 months ahead of time so that you can be sure of getting a good interest rate. Why leave it to the last minute and pay more?
10) Take a good look at your life and disability insurance coverage?
Is your coverage still appropriate for your needs and does it work within your financial plan? Our mortgage brokers at Best Mortgage Montreal can put you in contact with experienced, licensed life and disability insurance advisors so that you can discuss this further for your greater financial benefit.
No matter what kind of property you are looking to buy in the Montreal area, Best Mortgage Montreal have the expert mortgage brokers who can help.
For practical and realistic advice and the lowest interest rates on first time mortgages, second mortgages, renewals, debt consolidation, refinancing, bad credit mortgages, and more. Contact Best Mortgage Montreal today filling in our easy-to-use online form or by calling:
1-855-777-1711
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