Increasing Your Mortgage Voluntarily
I have seen firsthand the importance of being proactive when it comes to managing your mortgage. With fluctuating interest rates and economic uncertainties, it’s crucial to plan ahead to ensure your financial stability. In this blog post, I will discuss why voluntarily increasing your mortgage now can be a wise decision to prepare for future rate hikes when your mortgage comes up for renewal.
Why Increase Your Mortgage Voluntarily Now?
What Can I Do At Renewal?
Something many of my clients are doing at their renewal is re-amortizing their mortgage now that rates are higher. This means voluntarily increasing the total time it takes to pay off your mortgage. The benefit here is to lower the monthly mortgage payment to fit with your current budget. The downside is that it does mean you’ll be paying more interest off over the lifetime of your mortgage. If you find your new payment is manageable, then you can still utilize your prepayment privileges to pay down your mortgage faster at no penalty to yourself. Should the monthly amount become too much, you can always stop the prepayments.
In the world of mortgages, being proactive is often the key to financial success. Voluntarily increasing your mortgage payment now, while you have a low rate, can help you prepare for future rate hikes when your mortgage comes up for renewal. We can explore the best options for your unique financial situation and secure your financial future.
Tim Ward, Collingwood Mortgage Broker.
