Til’ death do us part (you and your mortgage)
Can’t wait to introduce you to a great friend of mine - Yeni Kim, my mortgage broker. Yeni and I met at a church softball league almost 10 years ago and became fast friends. We both grew up in Etobicoke, Ontario and love to laugh. She’s great at what she does and has written an article on Mortgage Renewals that I found really helpful in understanding how the mortgage world works. Read on for more!
-Rosemary
I’m Yeni Kim, a mortgage broker who advises homeowners, business owners, self-employed professionals and real estate investors to navigate their mortgage options and make informed financial decisions. I pray for financial freedom and blessings for my clients often and I believe mortgage planning is about more than numbers - it is about helping people make decisions that create opportunity without creating unnecessary stress.
As Christians, we are called to be good stewards of what has been entrusted to us. Luke 14:28 reminds us to “sit down first and estimate the cost.”
That principle applies to our finances too. Whether you’re renewing a mortgage, refinancing, consolidating debt, accessing equity, or considering a real estate investment, it’s worth taking a step back and asking whether your current strategy still supports where you’re going.
Don’t just renew. Review.
When your mortgage comes up for renewal, you don’t have to simply accept the offer your bank sends and continue as usual. In most cases, renewal is one of the easiest times to make changes because you can move away from your existing mortgage without paying a mortgage-breaking penalty.
For homeowners with a property worth $1 million or more, the home may be one of their largest financial assets. Yet the mortgage is often treated simply as the loan used to purchase it. As your property value and equity increase, it may be worth looking at the mortgage differently — as one part of your overall financial strategy.
Rather than focusing only on the interest rate, ask yourself:
“Is my mortgage structured to support my financial goals?”
Maybe your priority is improving monthly cash flow. Extending your amortization — the length of time you have to repay the mortgage — may reduce your monthly payments. If your family is growing and you need a larger home, restructuring the mortgage may also help manage the transition, although you’ll still need to qualify based on your income and financial circumstances.
Maybe interest rates have changed significantly since you first purchased your home, and your payments are going to look very different at renewal. Refinancing may be worth exploring, particularly when you can make the change without a breaking penalty.
You may also have equity that could be put to work. Perhaps you’re planning a major renovation, consolidating higher-interest debt, or looking for additional flexibility. Depending on your circumstances, refinancing or a mortgage product that combines a mortgage with a HELOC may provide options worth considering.
And you don’t necessarily have to leave your current bank. You can compare what they’re offering with other lenders, look at different mortgage structures, and determine whether the best solution is a new lender, a different product, or simply a better arrangement with your existing one.
We often hear from clients who are nervous that asking questions or exploring alternatives could somehow put their mortgage renewal at risk. There’s no reason to make a financial decision out of fear or simply because it feels easier to sign and move on.
Your mortgage is a significant financial commitment. Taking the time to understand what you have, what has changed, and what you’re trying to accomplish can help you make a decision that aligns with your goals, values, and peace of mind.
That’s where working with a mortgage professional can make a difference. Rather than looking at your situation through the lens of one institution or one mortgage product, a mortgage professional can help you look at the bigger picture and consider how your mortgage fits into the broader financial strategy surrounding one of the largest assets you may ever own.
When the renewal notice arrives, don’t just renew. Take the opportunity to review.
If you would like to understand what options may be available to you, contact me and we can review your situation together, explore different options and strategies, and determine what makes the most sense for your specific circumstances and goals.
You can reach me at yeni.kim@yenimortgages.com.
Yeni Kim - Mortgage Broker, Flow Lending Group, Powered by Mortgage Architects (License #12864)
Back to your regular programming, Rosemary!
