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Is it almost time to renew your mortgage? Did you know there are some amazing possibilities available when renewing your mortgage? If you're not aware, we've got all the details here on how to make your mortgage renewal work for you as we head into 2024.

Secure a Better Rate

Did you know that when you get a notice that it's time to renew your mortgage, it's the perfect opportunity to explore better interest rates? When it's time to renew, it's easy to shop around or switch to a different lender for a more favourable interest rate without breaking your mortgage. With interest rates expected to decrease in the New Year, taking some time to reach out and explore the market could help you save money!

Consolidate Your Debt

Renewal time is also an excellent moment to assess your existing debt and decide whether you want to consolidate it into your mortgage. For some, this could mean combining holiday credit card debt into the mortgage, while for others, it might involve merging car loans, education loans, etc. Regardless of the type of debt, consolidating into your mortgage allows for a single, manageable payment instead of juggling multiple loans. Plus, in most cases, the mortgage interest rate is lower than what credit card companies charge.

Kickstart Home Renovations

Do you have home improvement projects you've been eager to start? Renewal time is a great opportunity to consider using some of your home equity to fund those renovations. Finally, you can have that dream kitchen, or updated bathroom, or even use it to purchase a vacation property!

Adjust Your Mortgage Product

Unhappy with your current mortgage product? Perhaps you find that your variable-rate or adjustable-rate mortgages are too unpredictable, and you want to lock in. Conversely, you may want to switch to a variable rate as interest rates stabilize. You can also use your renewal time to take advantage of a different payment or amortization schedule to pay off your mortgage faster!

Switch Your Lender

Not satisfied with your current lender? Maybe another bank offers a lower rate or a mortgage product with terms that better suit your needs. Mortgage renewal is an ideal time to switch to a different bank or credit union to ensure you get the value you want from your mortgage if your current needs aren't being met.

Regardless of your feelings about your current mortgage and the changes you might be considering, if your mortgage is due for renewal, don't hesitate to reach out to me today! I'm here to discuss your situation and review any beneficial changes, from exploring new rates to leveraging equity. I can help you find the best option for your current life stage and ensure future financial success. Just reach out, and we can set up a virtual/in-person appointment. Call or email to book an appointment: 778-814-0195 or info@asmartwaylending.ca

Thinking about buying a home? It's a big deal! To make sure your house-hunting journey is as awesome as possible, there are a few things to keep in mind before you dive in:

1. Get Pre-Approved: Don't skip the pre-approval step! It's like the golden ticket to knowing what kind of home you can actually afford. By going through this process, you figure out the real price range that suits your financial history. It's the first and crucial step in making your house dreams a reality.

2. Stick to Your Budget: Budgets may sound boring, but trust us, they're your best friends on this journey. Don't be tempted to stretch your budget to its limit. Closing costs and the ongoing costs of homeownership are real things. Getting pre-approved helps set a realistic budget that won't leave you strapped for cash.

3. Get a Real Estate Agent: Your dream team includes a mortgage broker and a real estate agent. In today's crazy housing market, trying to go it alone is like playing a game without the rules. Realtors have the inside scoop on properties, sometimes even before they hit the market. They're your guides from the first house visit to winning the bid.

4. Look Beyond Aesthetics: Sure, everyone wants a Pinterest-worthy home, but don't let a funky paint colour or outdated fixtures blind you. A little paint and new light fixtures can work wonders. Don't sacrifice the perfect location or price for things that can be easily changed.

5. Think About the Future: Your needs now might not be the same in the future. Are kids or ageing parents in your future? Consider what might happen down the road. Buying a house is a big deal, but it's not forever. Planning ahead ensures your home grows with you.

If you're gearing up to buy a home, whether it's your first or an upgrade, I'm here to help! Let's chat about mortgages, pre-approvals, and everything you need to know before you start this exciting journey. Just reach out, and we can set up a virtual/in-person appointment. Call or email to book an appointment: 778-814-0195 or info@asmartwaylending.ca

When you apply for a mortgage, and the traditional lenders like banks or credit unions turn you down, it's natural to feel a bit disheartened. But remember, there are always other options available!

If you're in need of a mortgage, but your application doesn't quite fit the mold of the big traditional players, you'll find yourself in what folks in the industry call the "Alternative-A" or "B" lending space. This realm includes three main categories:

1. Alt A Lenders: These are the likes of banks, trust companies, and monoline lenders. They're substantial institutions regulated both at the provincial and federal levels, yet they offer products that cater to consumers who need more flexible qualifying criteria to secure a mortgage.

2. MICs (Mortgage Investment Companies): Similar to Alt A lenders, MICs adhere to the Income Tax Act and consist of individual shareholder investors pooling their money to lend out on mortgages. They have unique qualifying criteria and often provide even broader options for borrowers.

3. Private Lenders: Typically, these are individual investors who lend their own funds or sometimes specialized companies formed to provide loans for mortgages that carry a higher risk due to a borrower's situation. These lenders are generally not subject to strict regulations and often work with individuals who have a higher risk profile.

All these classifications price their mortgages according to the level of risk involved. The broader the guidelines for a particular mortgage contract, the more risk the lender takes on, which usually translates to a higher interest rate for the borrower.

Before you decide to go for an alternative mortgage, consider these questions:

- What's stopping me from qualifying for a traditional "A" mortgage today?

- How long will it take to rectify this issue and qualify for a traditional lender mortgage?

- What do I need to do to improve my credit situation or score?

- How much do I have available for a down payment?

- Am I willing to wait until I can qualify for a regular mortgage, or do I need to secure a home now?

- Can I afford the higher interest rate associated with this mortgage?

- Is it possible to switch to a different lender down the line if this alternative option doesn't work out or isn't renewed?

If you're considering an alternative mortgage because of a lower credit score or a need to move into a home without waiting for traditional lender approval, these additional questions can be helpful:

- What's the interest rate, and what about the associated fees? Are these fees paid from the mortgage proceeds, added to the balance, or paid separately?

- What's the penalty for missing mortgage payments? How is it calculated? What's the cost of getting out of the mortgage entirely?

- Do you have the option for prepayment without incurring penalties, such as making extra payments once a month?

- What's the cost of each monthly mortgage payment?

- What happens when the term ends? Is renewal an option, and what are the costs if applicable?

- Don't forget to scrutinize the fine print!

When it comes to the world of alternative lending, things can get a bit intricate. If you're considering an alternative lender, or need more information, you can reach out to me, I would be happy to help. Call or email to book an appointment: 778-814-0195 or info@asmartwaylending.ca

Thinking about co-signing a loan? It's a noble gesture to help a family member or friend, and it can help them overcome certain hurdles when borrowing money. But there are some important things to keep in mind when you decide to become a co-signer:

1. Credit History: When you co-sign a loan, you're essentially giving the borrower access to your credit history. If they miss payments or run into trouble with the loan, it will affect both your credit score and theirs.

2. Legal Matters: Make sure you understand the legal and tax implications that come with co-signing. If the borrower can't make payments, consult with a lawyer to review the loan agreement and any potential issues you should be aware of.

3. Timeline: How long will your co-signing commitment last, and are there opportunities to change your involvement in the loan down the road? Knowing this will help you gauge the extent of your responsibility.

4. Taxes: Depending on the loan, you might be on the hook for capital gains taxes. It's wise to discuss your tax situation with an accountant before co-signing to avoid any unpleasant surprises.

5. Relationship with the Borrower: Trust and knowledge of the borrower's financial situation are crucial. Are you comfortable taking the risk to assist them? It's a big decision, especially if it's a family member or close friend.

6. Future Finances: Consider how co-signing might impact your own financial plans. Will it affect your ability to refinance for a home renovation or make changes to your mortgage? Ensure you have the flexibility you need for your future and your family.

Co-signing a loan is a significant responsibility, but when done right and with people you trust, it can be a great way to support loved ones in achieving their homeownership dreams. If you have questions or need more information about co-signing, you can reach out to me, I would be happy to help. Call or email to book an appointment: 778-814-0195 or info@asmartwaylending.ca

When it comes to your mortgage, the frequency of your payments matters. You can make payments monthly, bi-monthly, bi-weekly, accelerated bi-weekly, or even weekly. Here's what each of these payment frequencies means, explained in simpler terms:

**Monthly Payments:** This is the default option. You make one large payment every month. For example, if you have a 25-year mortgage, it will take 25 years to pay it off with monthly payments. You make 12 payments each year.

**Bi-Weekly Payments:** With this option, you make 26 payments in a year. Your monthly mortgage payment is multiplied by 12 and divided by the 26 pay periods. It can save you some money in the long run.

**Accelerated Bi-Weekly Payments:** This is similar to bi-weekly payments, but you pay a bit more each time. It helps you pay off your mortgage faster and saves you a significant amount of money over the mortgage term. This option is especially useful if you get paid every two weeks.

**Weekly Payments:** Like monthly payments, but you make 52 payments in a year, one for each week. It can also save you money, and you can go for accelerated weekly payments to save even more.

Now, here's an example to put it in perspective:

Suppose you have a $750,000 mortgage with a 3-year fixed rate of 5.34% and a 30-year amortization.

- With monthly payments, you pay $4,156.19 per month. No savings in terms or amortization.

- Bi-weekly payments are $1,915.98, saving you $177 in terms and $1,769 in amortization.

- Accelerated bi-weekly payments of $2,078.10 save you $1,217 in terms and a whopping $145,184 in amortization. You also pay off your mortgage 4 years and 12 months earlier.

- Weekly payments of $957.50 save you $253 in terms and $2,526 in amortization. You can save even more with accelerated weekly payments.

**Prepayment Privileges:** Most Lenders also allow you to make extra payments, up to 20% of the principal, each year. This helps you reduce the overall length of your mortgage. For example:

- An extra $50 bi-weekly saves you $32,883 and shaves off 1 year and 2 months from your mortgage.

- An extra $100 bi-weekly saves you $62,100 and reduces your mortgage by 2 years and 3 months.

- An extra $200 bi-weekly saves you $111,850 and takes 4 years and 1 month off your mortgage.

Understanding these payment options is essential for managing your monthly budget. If a large payment seems daunting, breaking it down into smaller, more frequent payments might be the solution. On the flip side, if weekly or bi-weekly payments are challenging, you might benefit from one monthly payment that gives you more time to gather the funds.

For more information, you can reach out to me, I would be happy to help. Call or email to book an appointment: 778-814-0195 or info@asmartwaylending.ca