Of Prime Interest: Make your mortgage work for you

Your mortgage can be a goldmine of savings to tackle the renovations or landscaping project you have been dreaming of.

  • Dec. 1, 2016 1:00 p.m.
Of Prime Interest: Make your mortgage work for you

Your mortgage is a powerful financial tool. Make it work for you.

Begin by having a financial check-up on your existing mortgage term with a mortgage broker for an independent analysis.

While a good investment advisor can earn you thousands of dollars, a good mortgage broker can save you thousands by finding the best combination of mortgage features and rates to suit your situation.

With mortgage in hand, talk about you financial goals—whether you are looking for a way to reduce monthly payments, save on your mortgage interest over the long term, pay down the mortgage sooner, finance a special project or buy a second home for your child while they pursue a post-secondary education.

Thousands of Canadians have been taking a look at their fixed rate-rate mortgages in the last few months.

Mortgage brokers don’t have an economic crystal ball, but it seems clear that with mortgage rates lower than they were in our parents’ generation, the odds of an upward trend in mortgage rates are pretty good.

So that means right now, you have an historic opportunity to get your mortgage working for you.

Even if your mortgage is not up for renewal anytime soon, it’s still worth a review to see if it can be renegotiated at a better rate.

Don’t assume that you are stuck with a fixed rate mortgage if it’s several points higher than today’s rock bottom rates.

A mortgage broker can access rates from a wide variety of lending institutions and provide professional analysis of your options.

A drop of a few points can save you thousands of dollars over the life of your mortgage.

What if the end of your mortgage is in sight? Good for you.

Either take a watch and wait approach or consider a blend and extend to combine your old rate with current rates to help you take advantage of the low current rate opportunity.

The current low rates are a boon to spenders as well as savers. Thinking about that home renovation? Or landscaping project this year? Ask a broker about using a mortgage to finance the project.

Mortgage rates are typically far lower than other types of loans or lines of credit so put your equity to work at rates that you couldn’t have dreamed of 10 years ago.

Whether your goal this year is to save or to save while you spend make your mortgage work for you.