Left Brain: Create Your Timeline
Contact your lender 90 to 120 days before your renewal date to determine your mortgage options. Yes, lenders must send you a letter 21 to 30 days in advance, but feeling rushed may impact your best mortgage decision. Let’s be honest: There is a lot to learn about mortgages and buying a home while you are living life!
You can make different choices, such as:
Changing lenders. Each lender has different rates and rules. Finding the scenario that meets your goals is critical. This exercise may impact the rate from your current lender because they will be motivated to keep your business. If you're renewing at a different institution, a new application process will add time.
Consider a mortgage broker who can access various lenders and may find you a better deal.
Identify your penalties for moving or paying off the mortgage early and your options for pre-payment. This could save interest costs if rates change before your renewal date.
Agreeing to a shorter-term mortgage while you look for another home.
Preventing anxiety and feeling pressured. If you wait, you may feel stressed about selecting the renewal option and signing the documents on your renewal date.
Being prepared. A recent study by the Angus Reid Institute found that 30% of Canadians already have difficulty with their mortgage payments. When asked how they feel about rising interest rates before their next renewal, 77% of respondents said they are worried about this increase. You can change this!
Gain confidence: Book a Coaching by the Hour session
with Fenske Financial Coaching to learn how to manage the impact on your lifestyle.
Right Brain: Know Your Decision-making Strengths and Blind Spots
Your personality impacts how you will approach this process. Knowing your personality type and your partners will help you move through it confidently, respectfully, and successfully. This transaction is an excellent opportunity to review your values, financial situation, and goals. (See post #1 to access the Values Assessment.) Be curious about why financial planning, goal setting, or following a budget are difficult or easy for you.
Let’s review the differences between two types of people:
People who like to make decisions and achieve satisfaction by checking things off the list accomplish the task fairly quickly. However, you may make money decisions too soon, before you have all the information. Then you may be disappointed. Tip: Review information from 3 sources, include more opinions, wait a few extra days, or meet with me to walk through the decision process.
Those who prefer to explore all your options and don’t like to rush into decisions. You like to keep your options open and prefer things spontaneous and open-ended. This is helpful because you will find deals and details the other types might miss. However, you may appear to be disinterested or dragging your feet. You also may wait too long to decide and miss out or become overwhelmed with too much information. Tip: You will benefit from boundaries to ensure the decision is made. Set a timeline or a specific date for when the decision needs to be made.
If you are making this mortgage decision with a partner, get to know their strengths and blind spots so you can maintain respect and make timely decisions. While he or she is different from you, that does not mean decision-making has to be difficult. A team approach, with clear expectations, will result in a very satisfying decision. Understanding why others behave the way they do increases our tolerance for their behavior and makes collaborating easier.
Gain confidence: Book a Coaching by the Hour session
with Fenske Financial Coaching to learn about your personality type and financial decisions.
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Enjoy,
Karen Fenske, Registered Retirement Consultant, MBTI Coach & Founder
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