Invis October 2013 Newsletter

Oliver A. Heimann, Investment Advisor, DWM Securities Inc, Mortgage Consultant, Invis                 October 18, 2013

Almost half of homeowners sleepwalk through their mortgage renewal

Given the large financial commitment of a mortgage, it’s surprising that 44 per cent of Canadian homeowners either just accept whatever their lender offers at renewal, or don’t even remember how they renewed!

It’s tempting to just sleepwalk through the mortgage renewal process. But if you’re not doing even the slightest comparison shopping or negotiating, then you’re missing out on an opportunity to save thousands on your mortgage. When your lender sends you a letter saying it’s time to renew… what that really means is that it’s time to get advice. Professional, independent advice.

Get an expert second opinion on what you’re being offered. We’ll take a look, and compare it to what we can find out there as an alternative among the 50 or more lenders we have access to.

Got a mortgage renewal coming up in the next six months? Let’s start talking!

* A recent CAAMP/Maritz survey found that only 56% of renewers negotiated, 44% took the mortgage rate originally offered by their lender (39%) or just didn’t know how they renewed (5%)

Five ways to prepare for higher mortgage rates.

Mortgage rates on the rise? No need to panic; what you need is some smart strategies to prepare. Here are our top 5 tips:

1. Don’t take the money. If you’re buying a new home, don’t be tempted to borrow the maximum amount your lender will allow.

2. Do more than the minimum. If you have a variable-rate mortgage, build in some wiggle room by setting your payments higher than required. 

3. Plan to pre-pay. Find out what your pre-payment privileges are and pay whatever you can.

4. Conduct a reality check. Find out what your mortgage balance will be at renewal and use our online mortgage calculator to project what your payments could be if you renewed at a higher rate. Start to ease up to your new payment level so at renewal, it’s like a merge lane!

5. Watch your bad debt. Be cautious about any credit card or other high-interest debt.

Getting prepared for higher rates is not about panicking, it’s about being prudent.  Talk to us.  We can help you determine your best personal strategies to prepare for rising rates!

Polish your credit now… for the best rates later.

Your credit rating is how lenders check to see how reliable you are about paying your debt. Your credit history is considered a reliable indicator of how you will manage your mortgage and your finances in the future. A less-than-stellar credit rating can affect your ability to get the best mortgage rates. We have some quick strategies to help you polish your credit, and to build (or rebuild) your credit over time. The pay-off? You’ll get access to better rates and more borrowing options. Shaky credit but need a mortgage now? If it’s possible, we can probably find a way!

Source: Invis TV Website

DundeeWealth mortgages provided by Invis.

This article was prepared by Oliver Heimann who is an Investment Advisor with DWM Securities Inc., a DundeeWealth Inc. Company. This is not an official publication of with DWM Securities Inc. The views (including any recommendations) expressed in this article are those of the author alone, and they have not been approved by, and are not necessarily those of, with DWM Securities Inc.