Is It Time For a Mortgage Checkup?

Jackson Middleton • December 4, 2018

It’s coming up on the end of the year. It’s most likely been another busy year for you; when is it not right? While there’s so much to do as we get into the holiday spirit, this is a great time to reflect on your finances, more specifically your mortgage. Maybe you’ve had your mortgage for a couple years and it’s not top of mind. But things have not only changed in the mortgage industry, but also likely your own finances.

If you’re paying more than four per cent on any debts, now’s the time to look and possibly refinance the debt into your mortgage.

Mortgage Brokers work on so many files where people don’t realize their consumer debt is handcuffing and limiting them on what they’re able to do.

Their clients are concerned they’ll pay a penalty to refinance or lose their rate, but they don’t look at the long-term picture and realize how much they can save.

Yes, it’s gotten harder to refinance with all the government regulations and stress tests, but it can be done and it might save you money. Just remember, if you do decide get rid of the consumer debt, you need to make sure you don’t go down that hole again.


Once you’ve consolidated, look at your trade lines and keep what you need, not what you want and change spending behaviors where you can.

If you’re feeling good about your financial situation and have a little extra cash each month, consider your payment privileges.

If you do have pre-payment privileges, accelerated payments are fantastic if you use them.

A full-frill mortgage product could have a number of pre-payment privileges including accelerated payments of up to 20 per cent of your monthly payment, double monthly payments, and annual payments of up to 20 per cent of the full loan amount.

You might be surprised how much time you can knock off your mortgage by accelerated payments.

For example, on a 30-year mortgage, a one-time 10 per cent increase on your monthly payment can shave four years off your mortgage. If you bumped up your payment by 10 per cent each year, you would be mortgage free in 13 years. If 10 per cent is too high, five per cent gets you mortgage free in 18 years.

These are just a couple ways a mortgage checkup can help save you some money and get you on the right path for 2019.

If you'd like to discuss your options - any of our Canadian Mortgage Experts would love to help!


This article was included in the December 2019 DLC Newsletter.


RECENT POSTS 

How Your Loans and Spending Habits Are Quietly Shaping Your Credit Score

By Deploy.Mortgage • April 10, 2026
Your credit score is one of the most important numbers in your financial life — especially when it comes to getting a mortgage. But for most Canadians, how that number actually gets calculated remains a bit of a mystery.

RRSP As A Downpayment

By DLC Canadian Mortgage Experts • December 28, 2022
Did you know there’s a program that allows you to use your RRSP to help come up with your downpayment to buy a home? It’s called the Home Buyer’s Plan (or HBP for short), and it’s made possible by the government of Canada. While the program is pretty straightforward, there are a few things you need to know. Your first home (with some exceptions) To qualify, you need to be buying your first home. However, when you look into the fine print, you find that technically, you must not have owned a home in the last four years or have lived in a house that your spouse owned in the previous four years. Another exception is for those with a disability or those helping someone with a disability. In this case, you can withdraw from an RRSP for a home purchase at any time. You have to pay back the RRSP You have 15 years to pay back the RRSP, and you start the second year after the withdrawal. While you won’t pay any tax on this particular withdrawal, it does come with some conditions. You’ll have to pay back the total amount you withdrew over 15 years. The CRA will send you an HBP Statement of Account every year to advise how much you owe the RRSP that year. Your repayments will not count as contributions as you’ve already received the tax break from those funds. Access to funds The funds you withdraw from the RRSP must have been there for at least 90 days. You can still technically withdraw the money from your RRSP and use it for your down-payment, but it won’t be tax-deductible and won’t be part of the HBP. You can access up to $35,000 individually or $70,00 per couple through the HBP. Please connect anytime if you’d like to know more about the HBP and how it could work for you as you plan your downpayment. It would be a pleasure to work with you.