“Fasten your seat belts, it’s going to be a bumpy night” were the immortal words of Bette Davis in the 1950 classic movie, All About Eve. Know what else can be bumpy? Mortgage renewals. But they don’t have to be.
Inflation, the job market, and rising interest rates continue to be prominent factors in 2023. Will you be renewing your mortgage this year? Here’s what you need to know:
Survey Says!
Leger conducted an online survey with 1529 Canadians in October.
- 53% of Canadian homeowners with a mortgage are concerned about an increase in their payments upon mortgage renewal.
- In the same survey, 52% of homeowners said they already have a plan in place in the event of higher payments. 38% of those said they will cut back on spending, 9% said they’ll dip into savings, and 2% per cent said they plan to take on additional debt.
- Only 2% of respondents said they would sell their house in light of higher mortgage rates.
What Many Homeowners Don’t Know (yet)
- When asked how likely homeowners will be to shop around once they’re mortgage is up for renewal, 51% said they had no plans to change lenders and 9% said they weren’t aware this was even an option.
- Not shopping around can cost you thousands of dollars over the term of your mortgage. Why? Traditional lenders have no incentive to offer you a competitive rate at renewal time.
- Mortgage Brokers (like me) have access to hundreds of lenders. It’s our job to shop for the mortgage product that best matches your needs.
- The professional expertise offered by Mortgage Brokers is paid for by the lenders, not you.
Following the path of least resistance is easy, but it’s not always the best option at mortgage renewal time. Do your due diligence. Let’s talk about your mortgage renewal today.
All In The Family…
“Family is not an important thing. It’s everything.” ~ Michael J. Fox
