We spoke with Clay Jarvis, a mortgage and real estate expert at NerdWallet, to discuss what Canadians can do to prepare for a mortgage renewal in 2024.As we make our way through 2024 with no interest rate cuts yet to be had from the Bank of Canada , another wave of homeowners are facing mortgage renewals at much higher rates.
"If the mortgage balance is closer to the national average, which last year was about $343,000, you might pay $300 more a month, but if your mortgage balance is $500,000, you're probably looking at $600 more a month," Jarvis said. "So I'd say the people that are going to be in the most trouble are the people who are renewing their mortgages for the first time who bought in 2019 when prices were really high.
He also notes that mortgage brokers typically have good relationships with lenders, and are going to be able to negotiate more easily than most borrower would be able to on their own.Extending your amortization period at renewal might seem like a great way to get lower monthly payments, but Jarvis says it's an option that should be used with caution and careful consideration as there are three big risks that come with it.
The second risk is that having to pay off a mortgage for a longer period of time can eat into other financial plans, like retirement. "If you're 50 years old, and you push out your amortization an extra 10 years, now all of a sudden you're paying for your mortgage in retirement and that might not have been something you planned on doing 20 years ago," Jarvis explains.
Loans Loans Latest News, Loans Loans Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: CBCTBay - 🏆 42. / 63 Read more »
Source: SooToday - 🏆 8. / 85 Read more »
Source: SooToday - 🏆 8. / 85 Read more »
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »