Apparently 2012 is going to be one of the biggest years ever for
mortgage renewals in Vancouver. If that's you then I'm sure you've been
counting down the days as mortgage rates are far lower today than they
were 4 or 5 years ago when these mortgages were last renewed or taken
out. When you go into your bank, your mortgage representative should
give you several options.
Option 1 is simply to pay your monthly
or better yet bi-weekly mortgage payment based on your new lower rate.
Now I realize the extra cash each month is going to be nice to have.
Maybe take a vacation? maybe take in a Canucks game? Add more to your
How about option 2 - Keep your payment the same, you were
used to paying that anyway and have that extra money go straight to
paying off your principal. It will shave years off your amortization.
It's great to have these record low rates for at least another 5 more
years but remember they only have one way to go from here. Why not kill
off as much debt as you can while the getting is good? I can guarantee
you will never have any regrets chipping more principal off your
mortgage, especially when we start to see the higher mortgage rates in
the future. Paying $500 for a pair of Canucks tickets might be another
If you want to voice your opinion or get in touch with Owen, please email firstname.lastname@example.org and visit http://www.owenbigland.com for all his Inside Edge Real Estate video blogs.
This entry was posted on April 19th, 2012 by Owen Bigland | Posted in Video Blog