As the year 2022 is all wrapped up, I’m thinking about all the conversations we’ve had with our clients! I just wanted to say that you’re all amazing people, who are resilient and will get through the uncertainty that 2023 will bring.

Our team is here to help you with any mortgage and real estate related questions – regardless of who your lender is! We know that sometimes you need a second opinion and you’re just not getting a straight answer from your current lender. We also appreciate the referrals that we’ve received from our clients! We love helping your friends and family members too!!

Here are some mortgage and debt-related tips to help you get through these challenging times.

1. Should I lock in my variable rate mortgage?

I have a variable rate mortgage on my own house, and I’m not locking in! Although every person has a different financial situation. The long-term benefit of a variable rate mortgage is that over the five year term, one would generally get a better overall rate. That really doesn’t help you if you’re worried about your budget, monthly payments, and other debt you have. Several of our clients have switched to fixed rate mortgages and re-amortized the mortgage temporarily to lower payments as they weren’t comfortable with where their rates were headed. Remember we don’t judge! Although it’s not our decision to make for your mortgage, rest assured that we give good and valuable advice! Please book an appointment if you’d like to discuss what options you have to help improve your monthly cash flow.

2. What do I do if I’m not paying off my credit cards or lines of credit each month? How can I save money and lower my payments?

Since the overnight lending rate increased significantly in 2022, this did not only affect variable rate mortgages, but also your credit card and line of credit debt. If you’ve had challenges paying off your unsecured debt each month, now you will find that payments are even higher! The good news is that if you own a house, you likely have equity that you can use to pay off that debt and lower your overall monthly carrying costs. This is a common approach, as it consolidates all your debt into one payment and will help you start fresh for 2023.

3. I’m thinking about buying my first home – should I wait until 2024?

Real estate values are soft, so 2023 will be a good time to buy your first property or maybe even a rental if you’ve been thinking about it! If you’ve been pre-approved and still haven’t purchased, you’ll want to schedule an appointment for early January as rates are good now, especially on five-year fixed rate mortgages!

4. I used to be a client of The Mortgage Centre and now my existing lender isn’t offering me a good renewal rate – can I contact you?

Yes of course! Don’t worry about reaching out to us – we love helping! Have a happy new year and have a great start to 2023! Best regards, Sandra!