Q.What do I need to consider when my mortgage is up for renewal?
Home Equity Line of Credit (HELOC) is a type of mortgage that is secured against your home. As you pay off your mortgage and build up equity in your home, a HELOC allows you to gain access to your home equity to use the funds you need. But keep in mind that you cannot exceed 65% of your home’s value. People usually use HELOC to:
- Consolidate high-interest debt (for example: pay off credit cards)
- Renovate their home
- Pay for higher education, expand your current business, etc…
Q. Why should I consider refinancing my existing Mortgage?
There are numerous reasons why borrowers may choose to refinance the mortgage they already have. Some of these include:
- Consolidate high-interest debts into a much better financial plan with:
- Lower rate
- Lower monthly payment
- Shortened mortgage terms
- Renovate your existing property
- Personal investments (i.e: expand your current business; pay for post-secondary education cost; purchase a new car…)
- Purchase an investment property
Q. Why do I need to start early to renew my mortgage?
If you still owe a balance at the end of your mortgage term, you will need to renew your mortgage for another term. People may overlook the importance of starting research for their mortgage renewal early, but it is never a bad idea to have enough time to shop around for your next mortgage. Make sure you mark your current mortgage maturity date on your calendar and count back 120 days – this is usually the time your lender starts to send you special offers on renewals. Don’t rush to say yes to your lender since it may not be the best option you could get.
Q.What documents are required to get a mortgage?
Since January, 1, 2018, the government imposed mortgage rules requiring us to collect more documents up front:
-Salary Letter from Employer
-Recent paystub (within 30 days of the completed application)
-Previous year T4
However, required documents vary from case to case. Please chat with us so we can do the heavy lifting for you.