Business

Of Prime Interest: Turning a mortgage from a fiscal liability to an asset

A mortgage can be either a goldmine of savings or the pot of gold to help fiscally tackle that dream renovation or landscaping project.

It can be a powerful financial tool.

To determine just how powerful, start the process with a mortgage check-up. A mortgage broker can provide an independent analysis.

As a good investment advisor can earn you thousands of dollars, a good mortgage broker can save you thousands by finding the best combination of mortgage features and rates to suit your situation.

It’s starts with outlining your personal  financial goals—looking for a way to reduce monthly payments, save on your mortgage interest over the longer term, pay down the mortgage sooner, or finance a special project or buying a second home.

Thousands of Canadians have been taking a look at their fixed rate-rate mortgages in the last few months. We don’t have an economic crystal ball, but it seems clear that with mortgage rates lower than they were in our parents’ generation, the odds of an upward trend in mortgage rates are pretty good.

That means, right now there may be a historic opportunity to get that mortgage working for you. Even if your mortgage is not up for renewal anytime soon, it’s still worth a review to see if you can renegotiate for a better rate.

Don’t assume to be stuck with a fixed rate mortgage that is several points higher than today’s rock bottom rates.

A mortgage broker can access rates from a wide variety of lending institutions and provide professional analysis of your options.

A drop of a few points can save you thousands of dollars over the life of your mortgage.

Is the end of your mortgage in sight? Either take a watch and wait approach or consider a blend and extend to combine your old rate with current rates to help you take advantage of the low current rate opportunity.

Mortgage rates are typically far lower than other types of loans or lines of credit, so put your equity to work at rates that you couldn’t have dreamed of 10 years ago. Whether your goal this year is to save or to spend, make your mortgage work for you.

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