How to obtain lower monthly payments on your next renewal. ⬇️
✨Tip: extend your amortization back to 25/30 years.✨
Did you know during renewal you can renegotiate not only your rate but your amortization as well.
With interest rates being higher today than just a few years ago, many Canadians will be renewing at a higher rate. This will mean less cash flow in your pocket.
To obtain lower monthly payments with a higher rate, the mortgage would need to be re-amortized back to 25 or 30 years. Check out this example!⬇️
You bought a home 5 years ago at 3.5% interest rate, 25 year amortization. After those 5 years, your current lender will provide you with a renewal option for current rates today (5-6%) at a 20 year amortization. Extending the amortization back to 25 years with current rates today (5-6%) will keep your payments similar to what you previously paying with your lower interest rate of 3.5%.
Those looking to maintain their cash flow, invest in another property, or simply obtain a lower mortgage payment can benefit exponentially from implementing a re-amortization strategy.
Get in touch if you’d like to explore lowering your monthly mortgage payments.✨
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