I get it, mortgages are boring! Why would you want to revisit your mortgage every year?
Your mortgage is likely the largest investment you will ever make but most Canadians don’t even think about it after first signing off until renewal time is approaching or they are considering a refinance to access equity.
About 80% of Canadians visit their doctor at least once a year to help ensure they remain physically fit, but far fewer are checking their financial fitness annually.
It’s time for a mortgage check-up. Thankfully, this check-up doesn’t require you to face your weight on that maddeningly accurate doctor’s scale—or sit in a cold and drafty little room with an open hospital gown.
Actually, it’s a mortgage check-up that’s in order and making time for a quick review may yield some amazing results.
Life changes, families grow, job’s move and retirement objectives shift. There are any number of reasons why your mortgage, and possibly your entire financial picture, should be evaluated from year to year. Maybe there are no changes needed. But if there are, it’s better to identify them early.
The mortgage you signed up for a few years ago may no longer be the best fit for you. Doing a financial check-up is a very smart thing to do annually. Many often just wait for the renewal letter before they look at their mortgage and then go back to their current lender without considering whether that mortgage meets their current needs.
There are so many things that a mortgage can do for you. It can help you become more tax efficient, build wealth for retirement, renovate your home, consolidate high interest credit card debt or perhaps invest in a business, purchase a vacation or rental property and so much more.
When you obtain a mortgage it is most likely the largest financial transaction of your life. Here’s a thought for you—instead of focusing solely on the interest rate perhaps it might be important to consider various strategies you can use within your mortgage that will assist you with your goal of “mortgage freedom” and “financial freedom” when you are ready to retire.
Having the same mortgage strategy your entire life is not always the best financial decision.
If you are applying different mortgage strategies at different stages of your life, just like your other investments, they can lead to the financial wealth and the independence you are hoping for in retirement.
Don’t wait for your mortgage to come up for renewal and don’t wait until after you have made a major change in your personal situation.
By reviewing annually, you will ensure you stay financially fit.
Give me a call today for a review. I promise it won’t hurt.
This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.