BREAK MY MORTGAGE!

November 10, 2015 | Posted by: Dennis Street

BREAKING MORTGAGESo You Wanna Break Your Mortgage!!

Break My Mortgage ? So You Wanna Break Your Mortgage!!

The first step in breaking your Mortgage should be to review everything with your Mortgage Broker. In my experience it's important to have an unbiased opinion. There are right and wrong approaches in achieving your goals to breaking your mortgage. I've seen people pay horrendous penalties that could possibly have been avoided. At the very least I like to look at it to determine if it's at all worth it, or if there's a more cost effective solution. You need to be aware of the savings and what you can expect over the term of the new Mortgage. If for example you just contacted your Lender they of course will be happy to break it or maybe do a blend and increase which produces a higher rate that's good for them, but not you. Be careful to not make a hasty decision that will cost you substantially more over the term and set you back.

If the plan is obtain a lower interest rate a review and calculation from a mortgage professional will consider the cost involved vs. the debt payment savings and interest payment savings. As well, be open to suggestions like reducing the amortization period to maintain a similar outstanding balance at the terms end and keep the original target. There are occasions when a temporary second mortgage in the form of a fixed rate product or a Line Of Credit to be consolidated into the first mortgage on its renewal will save cost.Whether your objective is to improve on the rate, a debt consolidation or for some investment needs the guidance of a mortgage professional to avoid any pitfalls will be invaluable!

Call me at 289-240-8381 or email me: dennis.street@migroup.ca to discuss and review of your particular needs.

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