Written- December 2022

Expect significant changes if your mortgage is up for renewal in 2023. We continue to experience increases in the cost of living, and mortgage rates are on the rise – here are some tips that may help.
It is best to look at your entire financial picture months prior to your mortgage maturity – this allows you time to evaluate your finances in this costly economy. Do not simply renew your mortgage; instead, consider your options:
“Do I have any outstanding debt payments aside from my mortgage?”
“How much is my car payment?”
“Do I have an outstanding credit balance with a high cost of interest?”
“Am I able to pay off my credit card on my own in a few months, or will it take years to pay it off?”
“Will I receive a tax refund this year or will I have a balance owing at tax time?”
“Is my home too large? Should I downsize to reduce my total mortgage balance?”
Analyzing your financial picture takes a little effort; but with the right team and the right advice you can focus on getting organized. Here are some things to consider when reviewing your mortgage:
• Extend the amortization (up to 30 years) to arrange the lowest possible payment.
• Consider including credit card balances or expected large transactions in your refinance plan. This could eliminate multiple payments and help to alleviate long-term financial pressure.
• Select the term that best fits your needs. Your mortgage is not limited to a 5-year fixed term; other options include 2- or 3-year fixed terms. This approach allows you to balance your interest rate without committing to a longer term.
• Think about a variable rate mortgage. Although variable rates are currently higher, they offer the potential of future rewards. If you take a variable rate mortgage, you can lock in at any time during your term if fixed rates start to drop. You will also instantly save when the variable rate decreases. You must check with your lender as to their specific polices on locking in; however, most lenders allow you to lock into a longer term without penalties.
Most importantly, take the time to have a conversation with your Mortgage Professional. They will help you understand all of your options and execute the plan that best fits your individual needs.
Caroline Misetich
Mortgage Agent
T: 416 888 2458
E: caroline@fairmortgagesolutions.com
License #: M22003246
Company #: 10346