Hope everyone is enjoying their summer so far! We all know too well it comes as quickly as it leaves here in Toronto. Here are some helpful tidbits for minimizing ‘payment shock’ for your mortgage:
- Take a longer fixed term like 5 or 10 years.
- Try to make your mortgage payments over the required amount as much as you can go.
- Focus on paying down other outstanding debts (Ie. Credits card and loans) so you have more cash flow to put towards your mortgage.
- Invest about ten to twenty percent into a mutual fund of that you would put towards your mortgage so you have contingency funds if necessary.
- Try to aim for attaining the highest Amortization available to you. By doing this, you can still make higher payments than required but if an emergency situation strikes, you can automatically have a lower payment to deal with.
- You can try to attain a VRM (variable rate mortgage). Right now, we are not seeing dramatic increases in these types of mortgages.
- If you have the option, try to combine your property tax payment and mortgage payment into one. You really will not notice it coming out in increments every month and by the end of the year you’re done paying your annually property taxes! One less worry off your shoulders!
Last but not least, do not let mortgage payments rule your life! That is why we have mortgage brokers, to help us manage our mortgage in a comfortable way. Contact Robert Clancy to find out how at 416-899-1467!