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Taghow to save on your mortgage

$15,000 savings by breaking his mortgage early and getting into today’s low rates.

break your mortgage  Look, I don’t advocate paying penalties, however, if there is an obvious savings to be had, then you have to do it.   We’ve reached a point where interest rates are so low, it’s worth a review.  Here are some recent experiences with real people…. Enjoy.

I had one of my readers contact me about breaking his mortgage…  His current mortgage with a good lender.. a Non-bank lender..  his rate is 3.59%.   He took a 10 yr term last year.  Balance was over $500k.  So with 9 yrs remaining, we reviewed his options.

This was a no brainer.  Penalty to get out was under $5,000 (lucky he was with a non-BIG SIX BANK). But the savings over the next 5 yrs would be $20,500.   His net savings is $15,000.    Would you I recommend he break the mortgage?  Absolutely! Continue reading “$15,000 savings by breaking his mortgage early and getting into today’s low rates.”

Debt consolidation tip… just pay less interest!

Good debt Bad debtJanuary is usually a tough financial month for most of us.  Holiday bill payments, rrsp contributions, property tax bills and if you are self-employed, you probably have to make some sort of business tax or corporate tax payment.  If December is the Holiday Season, then January feels like a hangover!

BANKS and Credit Card companies love this time of year because this is when we will normally carry a balance and have to pay those crazy interest rates that range from 9% to 24%.  Wait, before you get too depressed, there could be a better option.  There’s a less expensive way to manage your debt. Continue reading “Debt consolidation tip… just pay less interest!”

Is there a better mortgage rate out there?

where to invest You’re 2 years into your mortgage term.  You got a great rate… or so you thought…? But now you aren’t sure.   So much talk about record low interest rates…  You begin to question..  Maybe there’s a better deal out there?   Did you choose the right product and Lender?  Has your mortgage advisor or broker contacted you during those two years?  Does this sound familiar?

We’ve all heard of buyer’s remorse….    That’s when you make a purchase, only to regret spending the money days or weeks later.    I’m seeing a lot of people second guessing their mortgage decision recently.   And I have news for you… RELAX! There is a way to check to and see if you made the right choice, and better still, there is a way to see if you can do better today. Continue reading “Is there a better mortgage rate out there?”

Mortgage rates hit all-time lows….it all adds up to record savings too.

graph trend downMortgage rates are still low… In fact, they are at record lows…  5 year fixed rates for qualify products can be found at 2.89%… some No Frills products are at 2.79% (stay away from these products)..   Put another way, for every $100,000 of mortgage you borrower, your payment is $468/mth.

Compare this with the average 5 year fixed rate for the past 25 years being over 7.00% and you have huge potential savings.  That same $100,000 mortgage would cost you $700/mth… That’s a $232/mth difference.  No wonder more Canadians are buying homes, buying rental properties or tapping into their equity to invest. Continue reading “Mortgage rates hit all-time lows….it all adds up to record savings too.”

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