Feeling stuck in your home because of the fallout from super low mortgage rates. Let's dig into the nitty-gritty and figure out how to make a move in 2023.
"Are low rates keeping you stuck at home?"
A lot of folks scored crazy low mortgage rates, but now those rates are causing problems. People are worried about higher rates and bigger monthly payments, making it hard to sell or refinance and leaving them feeling stuck.
"Why is this happening?"
The main problem? Really low interest rates from 2020 to 2022. People locked in rates as low as 1.5%, and now in 2023, rates have shot up to 5-7%. Growing families or changing circumstances make it tricky to upsize or relocate, creating a real challenge.
"Thinking about prepaying your mortgage? Here's the deal."
Paying off your mortgage early is an option, but there's a catch. You need to qualify under the stress test, which can limit your borrowing power by 10-15%.
"Ever heard of porting? It's not as simple as it sounds."
Porting, or moving your mortgage to a new place, isn't straightforward. Different lenders have different rules. Some let you blend existing and new terms, while others don't. It adds complexity to an already tough situation.
"But why is this such a big deal?"
The fear of the unknown is a major roadblock. People have misconceptions about payment increases and how it affects their finances, holding them back from making a move.
"So, what's the solution?"
Knowledge is power. Research your options—figure out if you can port or blend your mortgage, understand the costs, and think about what you might miss out on by not making a move. Overcoming the fear starts with knowing your stuff.
Ready to break free in 2023? If you want more guidance, reach out to the Flow Mortgage team.—let's make it happen together!
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604-262-3500
info@getflowmortgage.ca