If you are a first time home buyer, looking to refinance or renew, or many already have a mortgage and want peace of mind; then we suggest you “STRESS” Test your Mortgage! Simply put, stress testing your mortgage is to ensure your mortgage can withstand the test if there is an increase in interest rates. You can then make a decision what type of mortgage is best for your budget, or if you already have a mortgage, come up with a plan. Recent best mortgage rates and improved affordability help you in the short term, but are you prepared if there is a rise in interest rates?
If you are concerned about affordability down the road, there are ways to ensure your mortgage will stand in the face of increased rates, and knowing what your payments would be with a one to three per cent rate increase, will give you greater peace of mind. By coming up with various scenarios of what your finances would look like with higher interest rates is a valuable exercise and ensure your home is as affordable today and it will be in a few years time. Best mortgage rates are important but getting a mortgage that will work for you should interest rates rise or choosing the best term is equally important. Just one example of things to consider is a little wiggle room if you are a first time home buyer, locking into the best long term interest rate or paying off your mortgage faster with an open mortgage.
We cannot “Stress” highly enough the importance of this vital step and our mortgage brokers at Oakville Mortgage Team will assist you with our experience and expert mortgage advice. We will find you the best mortgage rate for both fixed and variable and find you the best mortgage product for your circumstances. We just don’t want to see you a mortgage, we want you to have peace of mind.