Let’s face it, when you bought your home and signed your mortgage agreement you probably had a lot going on. Let’s recap. 

Amortization

This is the total length of time you have to pay back your mortgage, for example, 25 years. Your interest rate won’t be the same for the entire length of your mortgage — this is where mortgage ‘terms’ come in. 

Terms

This part is tricky to understand but don’t worry we’ll walk you through it.

There are many mortgage term options, they vary in length, interest rates and repayment options. Typically, terms can be anywhere from 6 months to 10 years. The interest rate can be fixed at a specific rate or go up and down with the Prime rate. The term can be open, which means it can be paid off early without a penalty, or closed, which usually means you can make lump sum payments with no penalty but there will be restrictions on how much and when you can make extra payments.

Open mortgages are generally offered at higher rates than closed mortgages because they can be paid off (wouldn’t that be nice) at any time without a penalty. With fixed rate terms, usually the longer the term the higher the interest rate but … not always. We told you it was tricky, but one tip is to watch for promotions that offer special interest rates.  

Renewing

If you haven’t sold your home and plan to stay with the same lender, you’ll renew your mortgage for another term. You’ll probably renew your mortgage many times before it’s paid off completely. You may think you have little to consider when renewing but that isn’t the case. This is your opportunity to make changes to when you make your regular payments, and how much you pay. It’s also a time to consider what you want to get out of your mortgage and your home.

Before you renew, get ready to talk to your mortgage advisor by asking yourself some questions:

Has the amount of money you take home changed? 

Is your payment date and frequency still working for you? Do your mortgage payments still come out on payday?

Is it your goal to be mortgage-free? By when? 

Are you thinking of selling your home? By when?

Do you need more money? Do you plan to renovate, start a new business or go back to school? Or, is it time to consolidate your payments to make life more manageable? (sigh)

The answers to these questions will help you and your mortgage advisor find the solution that’s best for you, and your family. Whether it’s renewing or refinancing, a Kootenay Savings advisor can make your mortgage fit any circumstance.

Refinancing

You can refinance for just about any reason even if it's not time to renew. This means you would borrow more money based on the amount of equity you have in your home.  

And remember… with your Kootenay Savings FlexChoice mortgage you only see a lawyer and pay legal fees once, regardless of how many times you borrow or refinance.

Renewing and refinancing your Kootenay Savings mortgage is easy; give us a call to get started.