The land of mortgages is a big one and Ryan Boughen a multi-award-winning Regina Mortgage broker with TMG The Mortgage Group, understands how confusing it can be with new rules and rates and information appearing regularly in the market. There are also dozens of lenders with thousands of mortgage products available. Each lender is unique in the types of situations they will lend on, their terms and conditions, and their best mortgage rates. Ryan Boughen is a Trusted Regina Mortgage Broker and in this Trusted Regina mortgage tip, he shares mortgage renewal tips!
Your mortgage is probably the single biggest expense. Unfortunately, most people give it little thought. Here are the most expensive mistakes you must avoid when you renew your next mortgage.
✅ Don't take the first offer - Most times the first offer you receive from a bank or lender is never their best. Don't be afraid to shop around.
✅ Refinancing - Many mortgage brokers and lenders will bring up the opportunity to refinance your debt or take out equity from your home at the time of mortgage renewal. For more than 99% of us, this is a bad idea. The lure of “cheap money” is strong – whether it is to pay off debts or use the money for a home reno – going into more debt when you renew your mortgage will cost you in the long run.
✅ Paying off Debt Responsibly - If you have car loans, lines of credit, a balance on your credit card, or other personal debts, you should never pay more than the minimum on your mortgage. Paying off these debts, along with saving for your child’s education and putting away 15% of your gross income into retirement ALWAYS takes priority over paying off your house.
✅ Have A Master Plan for your Finances - If you fail to plan, plan to fail. Ideally, you should have a monthly, yearly and 5-year plan for your overall finances. Anything from planning your monthly expenses such as budgeting housing, automotive, and general expenses to the amount you want to see in your RRSPs and retirement fund.