Financial Review - Your Mortgage is part of a bigger plan

My focus is mortgages, but when I am discussing mortgage options with clients I also need to discuss or inquire about other aspects of their financial goals. 

• Do they need to increase cash flow in the short term to get a car paid off or a credit card paid down faster?  
• Do they need to consider refinancing in order to consolidate debt?  
• Are they thinking of moving or renovating in the next 1 - 5 years?  

If the answer is yes to any of these questions, or others, then we need to rethink what type of mortgage would best suit them.  They might need a loan where they can increase payment easily once the car or credit card is paid off.  They may need to go for a shorter term because they are planning to move in 3 years, or are considering it.  They may be considering a renovation and the current interest rates and home improvement incentives might move the plans up on the agenda so they may opt to refinance now and get started on the home improvements sooner and so they can enjoy the home they dream of.

There are so many things that can change in our lives every year and each one affects our finances, it might be more money available and what to do with it, or it might be a new purchase that costs a bit more than expected.   

I will not tell you how to invest your money, I am not licensed for that, but I can help you plan out options and how your mortgage fits in to those plans.  Whether it is using RRSP refunds to pay down debt or mortgage, or using funds to by an investment property rather than deal with the stock markets, mortgage financing is a very cheap way right now to achieve your goals.

I am not a big advocate for digging a bigger debt hole, but I do think there are times when using the equity in your house for something that has a real value or long term benefit may be worth exploring.  If we do it right you may even be debt free faster.  Getting the debt in the right place and making it as cheap as possible can help manage your money in a way that will set you up for the long run.

There are so many questions that people need to ask themselves before they sign the mortgage renewal form or go blindly out looking for "the best rate."  A home is a place to live and an investment, make sure it is working for you from every angle.