Stuck Mid-Term in a Mortgage and Want Today’s Lower Rates?

Mortgage Strategy

Three years ago many buyers got what seemed at the time, to be a great deal on a mortgage rate. Better yet, three years ago many buyers got a great deal on the home they bought, compared to today’s prices!

So, now it’s summer 2021 and your new neighbor just told you about how they got a significantly lower interest rate than what you currently have.  Is there a way for you to take advantage of the lower rate your neighbor has, while you are mid term in your mortgage? The answer is “quite likely, yes!”.  

Even after paying a possible mortgage prepayment charge (often referred to in the media as a “penalty”), there may be a small fortune sitting on the table waiting for you to take advantage of.

Below are three reasons to consider a refinance partway through your mortgage term:

  1. To obtain a lower interest rate and save money now. Depending on the type of interest rate term you have, you may realize significant savings over the remainder of your term. Better yet, you can secure this lower rate for an extended period of time and hedge against future rate increases.
  1. Your financial picture is more sophisticated now than it was when you originally got your mortgage. Please ask yourself these questions: Are you looking for a lower cost way to finance your vehicle? Are you looking for low cost funds for a new business? Are you considering the purchase of a secondary property? There are more sophisticated mortgage products available to meet these needs your current lender may not be providing you.
  1. Optimize your cash flow. Do you anticipate a change in the near future that would be benefitted by lower mortgage payments? Examples of this include maternity leave or starting a new business.

Not all mortgage products are created equally and our lives evolve.  Obtaining a lower rate and restructuring your finances are two ways to optimize for the future, now. Talking to your mortgage broker today is the first step to see whether the time is right for you to optimize your mortgage strategy.


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