The holiday season can often bring a mix of joy and financial stress. For those with mortgages up for renewal, feeling the pinch of inflation or concerned with any changes to an already tight budget, it may hit all too close to home.

As a mortgage professional, I understand the prospect of seeing your payments rise at renewal–now or even two years from now–can be daunting. That's why I'd like share a few practical tips to help you manage this anxiety effectively.

1. Understand your mortgage contract

Start by thoroughly understanding the terms of your mortgage. Familiarize yourself with details like your current interest rate, the renewal date, and any penalties for early renewal or refinancing. This knowledge will help you understand your mortgage options.

2. The importance of budgeting and financial planning

Develop a robust budget. Anticipate potential increases in your mortgage payments and adjust your spending accordingly, now or over the next few months. Financial planning tools and professionals can be helpful in this process, and I would be happy to provide you with a referral if needed. 

3. Explore renewal options

If your mortgage renewal is approaching, consider shopping around for better rates. Financing your mortgage with a different lender could potentially result in a lower interest rate, but it is important to be aware of certain restrictions, which I can gladly elaborate on. 

4. Stay informed about market trends

Keep yourself updated about the real estate market and interest rate trends. This knowledge can help you make informed decisions when it comes time to renew or refinance your mortgage. I'm here to help you stay on top of those trends.

5. Communicate with your mortgage professional 

Communicate openly with your mortgage professional, we are here to help. If you're facing financial hardship, there may be tools available to you. Lenders are often willing to work with you to find appropriate solutions in challenging financial times, with some offering assistance programs for those struggling with their payments. These vary by lender, but can include temporary payment deferral plans, skip-a-payment options or amortization extensions. 

If you are finding your current situation overwhelming, don't worry, you're not alone. Contact me today so we can review your finances and all of the options available to you. By staying informed, planning ahead, budgeting and taking care of your mental well-being, you can navigate this challenging period more effectively and enjoy the festive season with less financial worry. I'm here to help de-stress your mortgage needs. 

Tuesday, December 5, 2023