How a mortgage broker can help you navigate uncertainty

If you’re feeling anxious or uncertain about your mortgage these days, you’re not alone. Between interest rates, economic predictions, and your own circumstances, it’s easy to feel stressed. The good news is a mortgage broker is a perfect source to help you navigate this uncertainty. Here’s how we can guide you through the mortgage process.

Changes in interest rates 

If you’ve been following the Bank of Canada’s actions, you know they have introduced several interest rate increases since early 2022. As a home owner, it might be making your head spin. If the overnight rate right now is higher than it has been in over a decade, what does this mean for you? Should you be concerned about more rate hikes coming down the pipe? Mortgages are one of the biggest investments of our lives, and the uncertainty can feel overwhelming.

A mortgage broker can help you out with any stress you might be experiencing. While you’re not expected to be an expert on interest rates and how they affect your mortgage, that’s exactly what we do! Right now, most experts are predicting that we have reached the peak of interest rate hikes for this current cycle. In all likelihood, we won’t see more rate increases for the remainder of 2023. This might give you a reason to breathe a sigh of relief. If you have a variable-rate product, you shouldn’t expect to see many, if any, more increases to your payments. However, we will also say that rates will likely hover at their current point, and won’t drop soon either. Armed with this information, you can work with a broker to determine how this affects you.

Changing personal circumstances

What if your situation changes after you secure your mortgage, and now it doesn’t suit you anymore? This is, once again, the perfect time to let a broker help you out. Remember, we are here for you throughout your entire mortgage term! Your circumstances may have changed in a variety of ways. Perhaps you want to shorten or lengthen your amortization period. Maybe you’re wondering if your current interest rate is the best you can achieve. You might also be considering a refinance, or debt consolidation. Whatever the reason, mortgage brokers are a huge part of helping clients successfully maintain their goals. 

If you know what your specific issue is, a broker can help you discover how to solve it. We can chat with you about refinancing and debt consolidation, and all the options available to you. 

Risk of a recession

You have likely heard talk of an upcoming recession. These discussions can bring up a lot of uncertainty and stress for everyone, especially home owners trying to pay off a mortgage. You may be hearing lots of tips from all corners of the internet, friends, and family, on what you should do. As brokers, we understand how important it is to make the right choices so you can maintain your payments. 

You don’t need us to tell you that if you’re concerned about your finances, now is the time to cut back on unnecessary spending. What we can do is help you determine how to handle your mortgage during these challenging times. For the most part, home owners can stay the course with their current mortgage. There might be temptation to switch to a fixed rate to avoid current variable rate increases, but it’s important to look to the future as well. Eventually, variable rates will sink back down. If you maintain your variable product, you will benefit from this inevitable trend. While you might feel anxious, our clients are stress tested and can support current rates.

However, you are always welcome to reach out to us if you have any questions or doubts about your mortgage in terms of handling an economic downturn. We are here to help!

Navigating different mortgage products

The mortgage world is big, and there are lots of different lenders and products out there. It’s natural to feel overwhelmed if you try to navigate these options on your own. Mortgage brokers are an invaluable resource in this regard. We can walk you through various types of lenders and their products. For example, we can discuss conventional and alternative lenders, fixed and variable rates, open and closed products, and more. Apart from that, we can help you find the right lender to secure the proper product for you. Real estate can be competitive, so it’s important to have a broker on your side!

Being a home buyer and home owner can be stressful, but we’re committed to making it easier. We have been trusted mortgage advisors for over a decade, and we have dealt with all kinds of situations and conditions. Mortgage brokers make your experience in the market much better, and we’re ready to help you get started.

If you have any questions, get in touch with us at Clinton Wilkins Mortgage Team! You can call us at (902) 482-2770 or contact us here.