Feeling the post-holiday financial squeeze? You’re not alone. January credit card bills are arriving to remind us how much we spent on the festive season. That's why this is the perfect time to ensure you have the financial control to achieve your goals. Here are some strategies that can help:

1. Kill high-interest debt. If you carry significant credit card balances or other high-interest debt and have enough home equity, you can consolidate that debt into one low-rate mortgage. You’ll improve your cash flow and simplify your life with one easy payment. Best of all, you can pay down your debt faster and save thousands in interest. No more running up credit cards, and you’re golden.
2. Boost your credit rating. You can improve your rating quickly with a few smart moves. Always pay your bills on time. Never let your credit card balance go past the 50% mark, i.e. if you have a $5,000 card, it should never exceed $2,500. That goes for any lines of credit, too. And don’t apply for store cards when you’re asked at check-out. The better your credit rating, the better the rates you can negotiate on your next mortgage.
3. Step up your payments. If you are paying your mortgage monthly, consider changing to accelerated bi-weekly or weekly payments, increasing your payment amount, and putting a lump sum, such as a tax refund, on your mortgage principal. You can save significant interest over the life of your mortgage. Even small amounts add up.
4. Renovate, don’t relocate. Feeling like it’s time to trade up? Consider this: the proper renovation might be all it takes to turn your current house into the home of your dreams. It is almost always less expensive to renovate than to relocate! I have some fantastic renovation financing options to help you improve the quality of your life while increasing the value of your home.
5. Choose low-interest debt. A recent Mortgage Professionals Canada survey showed that almost 10% of homeowners had enough home equity to use their mortgages for low-cost financing. The average equity takeout was $47,600 for renovations, debt consolidation, investments, second homes and rental properties, purchases, or education.
6. Do not sleepwalk through your mortgage renewal. Please contact me when you receive a renewal notice. Your renewal is your golden moment to save thousands. I can help ensure you get the best possible deal!

If you’re feeling financially overwhelmed or have a new purchase, refinance, or renewal in your financial future, get in touch so I can help ensure you get where you want to go.

Given the large financial commitment of a mortgage, it's surprising that so many homeowners go on auto-pilot when it's time renew. Of course, your lender wants your repeat business and their renewal letter (typically sent between three and six months before your mortgage matures) will make it very easy and convenient for you to oblige – just sign the letter and your mortgage renewal is done. In fact, some borrowers may not even realize they don't have to accept their lender's offer. They can and should explore other options available in the marketplace, especially now since the stress test is no longer a factor if you want to switch lenders at renewal. So when you get your lender's renewal letter, ask yourself one simple question: "Can I do better?" The answer in most cases is a resounding "YES".

Here's why getting a mortgage expert working for you as early as nine months prior to renewal is a great way to ensure you get the best deal:

1. Recently announced changes have eliminated the stress test for borrowers who want to switch lenders at renewal, which means you have choice! Since I have access to over 50 lenders, and thousands of product options, I can shop around to make sure you are being offered the best deal possible.
2. A good credit score is important when you're looking to switch lenders – and your current lender may also take your score into consideration at renewal. You have more control over your credit score than you think, and you may want to discuss credit improvement strategies. I can help.
3. If you have enough equity in your home, you may be able to move high-interest debt to your lower-rate mortgage to improve cash flow and save on interest. Renewal is the perfect time to do this. I can run the numbers to see if this strategy makes sense for you.
4. Taking on new debt or leaving your current employment prior to renewal can affect your ability to move your mortgage to another lender. We can discuss the potential impact of changes to your personal situation.
5. If your mortgage is uninsured, I can help determine if you can switch to a lower-rate insurable mortgage that offers long-term savings.
6. If you need to free up cash flow for specific needs or life situations, a 30-year amortization might be an option for you to consider (20% or more in equity required).

Remember, I work for you. With access to dozens of lenders and hundreds of mortgage options, my goal is to help you make informed decisions so you always get the best package of rate and features that best fits your needs.

The Government of Canada was busy the last few months, introducing major mortgage reforms to make homeownership more accessible and affordable for Canadians. Here's a summary of all the changes in one email for you:

1. Borrowers switching lenders at renewal will not need to complete the Stress Test: Canada's banking regulator, OSFI, is poised to ease mortgage rules for homeowners looking to switch lenders during mortgage renewal. Effective November 21, borrowers renewing with a different lender will no longer need to complete the mortgage stress test, simplifying the process for those with uninsured mortgages. In the past, even a straightforward renewal switch required borrowers to demonstrate their ability to manage payments at a rate 2% higher than the new mortgage contract rate. This posed significant challenges as rates climbed to 6%, bringing the stress test rate to 8%. While insured mortgages were already exempt from this requirement, uninsured borrowers will now receive similar treatment.
2. Higher insured mortgage cap: Starting December 15, 2024, the insured mortgage cap will increase from $1 million to $1.5 million—the first adjustment since 2012! This update better aligns with today's housing market, allowing more Canadians to qualify for a mortgage with less than a 20% down payment.
3. Extended 30-year amortization: Also coming into effect December 15, 2024, first-time homebuyers and new-build purchasers will be eligible for 30-year mortgage amortizations (previously capped at 25 years) on insured mortgages. The longer amortization period will help make home ownership more affordable by lowering monthly mortgage payments. The change should also encourage new home construction to help ease the housing shortage.

These reforms build on earlier initiatives from 2024, including:

• RRSP Home Buyer's Plan: The limit was raised from $35,000 to $60,000, offering Canadians more flexibility when using their savings for a home purchase.
• Permanent Amortization Relief: Homeowners facing rising mortgage payments now have long-term support through this measure.

As more details are announced I will keep you informed, but these updates are designed to create new pathways to homeownership.

Whether you're considering a move, or nearing mortgage renewal, now's the perfect time to explore your options!

Let's chat about how these reforms could benefit you. Feel free to contact me for a free, no-obligation consultation.