Is Your Mortgage Up for Renewal?
So you are reaching the end of your term on your mortgage. Just like you visit the doctor for your annual check-up, it might be a good time to bring your mortgage in for its own check-up if it's time for mortgage renewal. This is a good opportunity to take advantage of today's best available interest rates or mortgage rates and adopt a proactive approach to your finances. After all, whether you've recently married, added a new family member, or changed jobs, your life may not be the same as at the time you first took out your first mortgage. Consider using the Mortgage Calculator to find out your mortgage refinance affordability with your financial goals.
As you take the time to review your finances and select a mortgage option that reflects your current needs and goals, keep these points in mind. This may include changing your mortgage rates, your mortgage payments, your current lender, your mortgage broker or changing your mortgage term altogether from a new lender on a new mortgage after closing your current mortgage.
Save on interest costs. If your finances allow you to increase your mortgage payments, you might want to choose a shorter amortization when you renew. (Amortization refers to the length of time it would take to pay off your entire mortgage). You'll have higher monthly payments, but could end up saving thousands in interest costs over the life of the mortgage.
The lump-sum strategy. If you have some cash on hand, you might want to consider making a lump-sum payment toward your mortgage principal when you renew your mortgage. This strategy can also save you on interest charges over the long-term. Prepayment is also an option but it may incur some charges by the mortgage lender or the financial institution.
Renewing (refinancing) your mortgage isn't just about finding the best rate (lower rate) of interest on the best mortgage terms. While that's certainly a part of the process, it may be the right time to review your overall borrowing options and tailor your mortgage to fit your current mortgage needs or financial situation.
Use your home equity to reduce your overall borrowing costs.1 The equity you have built-in your home can be a valuable source of financing — allowing you to borrow at better rates by using your home as security. The funds can also be used to pay for your child's education or pay for home renovations.
Better yet, you may want to consider using the equity in your home to pay off loans and credit cards with higher interest rates.
Talk to your Personal Banking Officer about options and how to apply for a mortgage that best meets your needs.
A little research can go a long way to buy a Home in Jamaica. Read up on some great advice and get ready to go home.
Subject to an updated mortgage application, verification of customer information and approval by The Bank of Nova Scotia or its applicable subsidiaries.