The economic contraction as a result of the pandemic prompted the Bank of Canada to cut its overnight rate to 0.25% to support the national economy. A by-product of this move has been the ultra-low mortgage rate environment, prompting the Big Six banks to slash their advertised five-year fixed mortgage rates, most of them are now close to or lower than 2%.
Record low rates are creating a dilemma for many homeowners currently locked in higher fixed-term rates. Now may be an opportune time to see if breaking your mortgage will make dollars and ‘sense.’
Breaking a mortgage is a major financial decision, and it is advisable to contact a professional who can look at your individual financial circumstances and offer the best course of action based on a cost-benefit analysis.
This review can also uncover otherwise hidden opportunities such as debt optimization, overall reduction in effective interest rate, possible tax efficiencies, as well as looking at how your mortgage can play an important role in your overall investment portfolio.
Over the past few months, renegotiating or replacing an existing mortgage has resulted in thousands of dollars of savings, and for some, even tens of thousands for many clients.
Our partners at Outline Financial, a Toronto-based mortgage brokerage firm, have direct access to a large number of banks, credit unions and mono-line lenders with the technical knowledge and expertise to negotiate the best possible outcome on your behalf.
For more information or to book a consultation, please contact Joanna Lang, Managing Partner.