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As life changes, a regular once-over helps keep finances in shape

For many Canadians, financial matters are about as enjoyable as their yearly physical exam. But the current low-rate environment may make it a good time for homeowners to become proactive about their overall financial health by taking a close look at one of their most important obligations – their mortgage.

A mortgage isn’t something you should sign once every few years and then forget about. Life can change substantially in a year, and a regular review can help ensure that your mortgage is still the right fit for your financial situation.”

A number of major life changes may call for a review of your mortgage, such as starting or growing a family, starting a business, loss or interruption of income, home renovations, purchasing investment property or other major expenditures. A mortgage professional can assess a homeowner’s current interest rate, payments and other mortgage terms, determine available home equity, and recommend options that may help them better reach their goals.

We can offer some common reasons to revisit your mortgage:

1. Paying down your mortgage faster: If you receive extra cash like a tax refund, work bonus or an inheritance, think about putting it toward your mortgage. For example, paying an extra $3,000 once every year toward the principal on a $250,000 mortgage can result in interest savings of $42,442 over the life of the mortgage, assuming a 25-year amortization and a fixed rate of 4.19%.

2. Lowering monthly payments: Renegotiating for a lower interest rate can protect your finances from unforeseen factors like a reduced income, and allow you to save up a rainy day fund.

3. Debt consolidation: Transferring high-cost consumer debt like a credit card balance to a lower interest rate by consolidating it into your mortgage can help you boost your cash flow to build up savings or pay down your debt faster.

4. Securing a Home Equity Line of Credit (HELOC): A HELOC can help you access lower-cost funds for investing, such as topping up your RRSP or TFSA contribution for the year. It can also help you pay for home improvement projects, so you can take advantage of the federal Home Renovation Tax Credit for eligible projects done before February 1, 2010.

5. Improving credit: We can coach you on how to improve your credit score, which can help you work toward future goals such as buying a vacation property for your family.

In some cases, a mortgage checkup may show that refinancing could improve your mortgage strategy. However, most mortgages require the borrower to pay a penalty if they pay off their mortgage in full before the maturity date. We can provide advice on what penalties you may incur and if refinancing is indeed your best option.

In the end, a yearly mortgage checkup could reveal that the best course of action is no change at all. Mortgage professionals can be excellent resources to help homeowners better understand their financing options, whether they’re buying a new home or staying put.

To arrange a checkup, please contact:

Brian @ 250-819-8176 or Starr @ 250-574-0115

Invis is one of Canada's largest mortgage brokerage firms with a national team of mortgage professionals. Invis mortgage professionals provide expert, unbiased mortgage advice to first-time homebuyers as well as those looking to renew or refinance their mortgage, purchase investment properties, or consolidate debts.

Build equity
When you purchase your own home and make mortgage payments, you accumulate equity in the property. You may borrow against this equity or convert it into cash when you eventually sell your property.

Stabilize housing costs
While rent typically increases from year to year, with fixed-rate and some variable-rate mortgages your payments remain unchanged throughout the term of the financing. The impact of inflation over the years means you pay the same amount, but in devalued dollars.

The opportunity to profit from appreciation
Housing has historically increased in value over time. At the same time as you build equity by making mortgage payments, what you can get when you sell your home may increase over the long term.

Enjoy tax benefits
Homeowners can enjoy tax benefits not available to renters. Portions of the interest paid on your mortgage may be tax deductible, and capital gains when you sell your home are in most cases tax exempt – your Invis mortgage professional can provide you with more information and guidance.

Ultimately, buying a home isn’t only about money. Home ownership makes it easier to put down roots in your community, and can give you a new sense of pride in your surroundings. You have full freedom to renovate your space to fit neatly with your family’s lifestyle.

Talk to us today about your own home financing options.

About Us

We are part of a national team of mortgage professionals serving Canadians from coast to coast. We provide expert, unbiased mortgage advice to first time homebuyers as well as those looking to renew or refinance their mortgage, purchase investment properties, or consolidate debts.