Your Yearly Mortgage Checkup

7 great reasons to do a yearly mortgage checkup

Last year, we watched mortgage rates go higher, and home prices diverge. It only takes a few minutes to review your mortgage file to determine if your current rate and mortgage product still fit your needs.

You just might be able to save more cash or make some budget room. Or pay off your mortgage faster than you think. Or have more options at renewal. Or use the equity in your home to make improvements. (That's a lot of 'or's — but that's the point.)

1. Re-examine your rate

Do you still have the best rate for your situation? Mortgage rates can change quickly, especially as markets heat up (or cool down).

• Can you save money with a switch to a lower rate?
• Is it time to lock into a fixed rate or change to a variable rate?
• Would you benefit from an early renewal if rates are changing?

Depending on the rate difference and any pre-payment penalties involved, your expert broker can help you determine your best rate option or a strategy you feel good about depending on where rates may be headed.

2. Free up some cash

Are you interested in lowering your monthly mortgage payments to help free up some budget room? Depending on your situation, you may be able to switch to a lower rate, trigger a refinance or extend your amortization.

Take a spin with our great calculators to see some numbers, then talk to an expert broker for your exact picture.

3. Get back into shape (debt-wise, that is)

Average household debt (excluding mortgages) increased in 2022. Have you considered consolidating your other debts into one mortgage payment? A refinance may help you regularly pay down your debt to get in the clear or improve your credit report, plus save you money with a lower interest rate.

4. Make improvements by accessing home equity

Does your home need some TLC or energy-efficient upgrades? Or perhaps you'd like the extra funds to invest or help the kids go off to college. If you have equity built up in your home, a refinance or setting up a Home Equity Line of Credit (HELOC) may be the added help you need to get things done or to set you up for a healthier financial future.

5. Get a new lease on life by paying off your mortgage faster

Even a small tweak to your monthly payment schedule can shorten your mortgage length significantly — saving you thousands on interest overall. Your expert broker can outline your options to squeeze a little more down on principal every month or save up to put down a lump sum (called pre-payment privileges). Plus, paying more down before your renewal may help you get ahead of higher rates.

In fact, working out a strategy now can help you save on interest later. And before you know it, you may be celebrating your last official mortgage payment!

6. Improve flexibility (in your mortgage conditions)

You're only as flexible as your current mortgage agreement allows. Your mortgage review may unearth unsettling restrictions or pre-payment penalties, which may cost you more in the long term.

Your expert broker can help you decide if a change is in your best (mortgage) interest, especially if your future needs are uncertain. At the very least, understanding your mortgage fine print can help you make more informed decisions along the way.

7. Considering a lifestyle change? Get pre-qualified to know your limits

Are you thinking about buying your next home to trade up for more space, or downgrade for less maintenance? Or perhaps you'd like to buy a vacation home or invest in a rental property.

Being as prepared as you can, as early as you can, will help you decide what you can afford, what rate you may qualify for, and how much you'll need for a down payment.

A rate discussion with our expert brokers is always informative. They can help you decide when may be the best time to make your move based on your details.

Take a quick pulse on your mortgage — to save more, or plan better.

Even if you and your True North Mortgage broker decide that no changes are necessary, you'll have peace of mind that you're doing everything you can to save money and manage your financial goals.

Having the right rate, mortgage product, and an expert broker in your corner is a fantastic way to start off another year.

We're here for you, anywhere you are in Canada — online, over the phone, through our chat bubble, or drop by one of our convenient store locations.