Gabriel Malka Mortgage Broker
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The early renewal of a mortgage loan

Is it worth it?

Your mortgage loan falls due in a few months. The current rate of your loan for a 5 years term is 3,39%. Your financial institution offers you to renew by anticipation, 4 months before the term end, at a rate of 3,09% for a new 5 years term.

Is it a good idea?

No, and in here is the reasons: The present offered rate could reduce again during these few months preceding the real date of the renewal and your loan having been renewed by anticipation, you would not benefit from this reduction.

Furthermore, chances are that the mortgage rates at the end of this new 5 years term will be higher than your actual mortgage rate. Therefor you would lose the benefit of a 3.39% rate for a few months.

The solution: Contact your mortgage broker 4 months before renewal date. Your mortgage broker is capable of reserving your rate for a period of 120 days and so to assure you of the best available rate on renewal date.

Make a budget

You wish to purchase a home, but have you budgeted accordingly?

Before thinking of buying a property, it is important to make a budget to ensure that it does not become a prison, but a place where life is good. It is not necessary to make a complete revision of your income and your expenses. However, buying a ...

Triplexes, quadruplexes

You’re buying a first home and like the vast majority of buyers your interest goes to a single family residence.

You’re buying a first home and like the vast majority of buyers your interest goes to a single family residence. Instead, why not buy a triplex or quadruplex?Of course, the in...

Minimum down payment

Portability of the mortgage insurance premium.

You want buy a property but you do not have the capital outlay required of 20% of the purchase price to obtain a conventional mortgage loan. No problem the mortgage lender will refer your file to a mortgage insurer. You will be charge with a mortg...

Mortgage pre-approval

Mortgage broker can help you answer in pre-approving you for a mortgage.

What is its purpose?In the previous article, we discussed the value of a budget and the importance of putting money aside to raise a down payment and to demonstrate to lenders your ability to meet the financial demands of...