Mortgage Renewals in 2024
Mortgage Renewals in 2024. As millions of Canadian homeowners approach mortgage renewals, many face the challenge of higher payments due to elevated interest rates. With 2.2 million mortgages up for renewal in 2024, stress in mounting, especially for those with fixed-rate mortgages that were locked in at historically low rates.
Early Planning and Communication
One of the best ways to manage this financial shift is to start planning early. Increasing your mortgage payments a few months before your mortgage renewal can help ease the transition. Additionally, proactive communication with your lender is essential. Lenders are more likely to offer relief options like payment deferrals or loan restructuring when homeowners reach out early.
The Role of a Mortgage Broker
Navigating the complexities of mortgage renewals, especially in a high interest environment, can be daunting. This is where a mortgage broker’s expertise becomes invaluable. Brokers can help you find the best deals tailored to your needs, making the process smoother and more efficient.
Mortgage Renewals and Accessing Home Equity
If you are struggling financially, tapping into your home equity might provide the cash you need. Cash-out refinancing allows you to replace your current mortgage with a larger loan, with the difference paid in cash. Alternatively, a Home Equity Line of Credit (HELOC) offers flexible borrowing against your home. However, it’s important to approach these options carefully, as they can increase your long-term interest costs.
Budget Adjustments and Financial Counselling
If higher payments are a strain, adjusting your budget to free up extra cash is crucial. Conduct a cash flow analysis to identify unnecessary expenses. If needed, consider more dramatic measures like downsizing. Seeking financial counselling can also provide valuable guidance and accountability as you navigate this challenging period.
Why Client First Mortgage Solutions Can Help You
This strategic approach can help ease the stress of mortgage renewal and set you on a path toward financial stability. If your mortgage is coming up for renewal, contact Client First Mortgage Solutions today. We can show you all of your options, so that you can choose the solution that is best for you.
Original Article – August 13, 2024 – Canadian Mortgage Trends
