We are the Mortgage Broker in Toronto that looks after our clients. That means we follow the trends you need to know about. Like Canada’s home debt crisis. Research tells us that household debt loads in our country have gone up 4% since the beginning of the pandemic. Even the Bank of Canada has sounded a warning note saying Canadian households have large mortgages compared to their salaries.
Advice to Manage Debt From Your Mortgage Broker Toronto
We can help in a variety of ways including finding the best mortgage rates. Here’s some advice on how to manage your debt. It will help you build a strong financial foundation.
- You can refinance. There are a few things you need to do before you take this route. First off, it’s important that you know how much equity you have. This is the percentage of your property that you’ve paid off and you own. Keep in mind that most institutions won’t let you refinance 100% of that number. Requesting a mortgage statement from the bank is a good way to get started.
- Watch out for any prepayment penalties. Our advice is your mortgage broker in Toronto is that you also need to be aware of prepayment penalty fees. For a fixed-rate mortgage, this will be either three months interest or what’s called the interest rate differential. With a variable rate product, you’ll need to pay three month’s interest.
Don’t forget that when you refinance you’ll need to consult with a lawyer. They will review the existing conditions for your present loan and register a brand-new mortgage. Remember, it’s a lawyer’s job look after the entire transaction. Their fees generally range from $700 all the way up to $1000 dollars.
You might want to consider switching lenders. If the balance on you owe is over a certain amount, the new institution might look after the legal fees for you.
