End of Year Mortgage Checklist

Author: Guardian Mortgages | | Categories: Mortgage Renewal , New To Canada Mortgage , Refinance Mortgage


At Guardian Mortgages, we understand that paying off your mortgage is a priority. However, like most borrowers, you may not have given it a thought to check whether your existing mortgage meets your current financial needs. Therefore, it’s wise to take your time and review your mortgage contract once again and make sure you have the right product.

As experts in mortgages, we’ve created a handy checklist to help you know about your mortgage with as little stress as possible. Follow our checklist to gain insight about your current mortgages accurately so that you get the most out of it.

1. Understand your mortgage options
Ask yourself this question, are you concerned with your monthly payments, or are you more concerned about paying down your mortgage faster? (those two may seem related, but they are not) Always check your mortgage options as different mortgage products achieve very different results. Consult with a mortgage professional that is knowledgeable specifically in those areas of topics.

2. Examine your prepayment period
Most mortgages have a prepayment option that allows you to make a lump sum payment once a year (typically on the anniversary date). This lump sum payment gets applied to your principal balance 100%!

3. Check your maturity date or renewal date
Sometimes it is locked in for a length of period, but it’s always good to keep in mind when this date is approaching. This is important because lenders will typically look at your past two years of income, keep this in mind while preparing your renewal.

4. Line up your financial plan when you do your mortgage renewal
This often saves a lot of time as you will be going through all of the same documents as you would if you were to do a personal financial check-up. This is the perfect time to ensure you are realigned to your financial goals and check how you are pacing.

5. Review your financial goals
Did you review your financial goal, and is your mortgage and the property contributing towards that goal? Your home is not just a place of residence. It also serves as a considerable portion of your ‘personal net worth.’ Managing both your mortgage and your property(ies) is essential in building personal net worth and growing wealth and security.

6. Assess your entire mortgage contract
Is it still the right mortgage for you? Are you in a better financial position than when you initially applied for your mortgage? By going into detail about what you can ‘requalify’ for, you can cut the cost of financing, and more importantly, you can cut the time it takes to discharge your mortgage. Ensure you always review the relevance of your current mortgage to your financial situation.

7. Investigate the property that you’re mortgaging
This is significantly more important if you are reviewing investment properties vs. your primary residence. How is it doing in the marketplace? Has the value gone up? Are there any immediate repairs or future repairs you have to budget? Do your due diligence on the property(ies) you own.

8. Analyse your current real estate portfolio
Are you improving on your own home, or do you plan to build up or continue building a portfolio of homes? What kind of improvements would you like in your homes? How much value are you looking to get out? What type of time frame? Each mortgage does affect any subsequent mortgage. So, financing in a real estate portfolio does require careful planning. Consult with a specialized mortgage broker for investment real estate financing.

9. Tax planning
This one is almost mandatory but often missed. Your real estate has an effect on your taxes and vice versa. Talk to your tax accountant and review your current situation to maximize your tax strategy. If set up correctly and in certain situations, your mortgage can contribute towards tax deductions as well.

10. Understand the environment you live in
This comes down to economic policy. Where is the prime rate headed? Is there economic turmoil or prosperity up ahead? How will this affect the future value of your property and interest rates on your mortgage? A bad real estate deal with a poor mortgage setup can still result in massive gains if the real estate purchase is ‘timed.’

If you have any concerns about a mortgage or you’re looking for a mortgage broker to help simplify the process, reach out to the best mortgage experts at Guardian Mortgages serving in Toronto, ON. We offer a unique bespoke service to our clients by actively managing every aspect of the mortgage process. With a team of licensed and certified mortgage experts and many years of lending experience, we ensure to provide you with quality services so that you obtain a perfect mortgage option for your unique needs.

To learn more about our services, please click here. Have a question? We’d love to hear from you. Contact us here