Did you know that 6 out of 10 Canadians will break their current mortgage at an average of 38 months? As we’ve discussed, locking in your variable rate to a fixed rate will increase the cost of breaking your mortgage. Despite our best intentions, sometimes life happens, and we need flexibility.
So here is a list of potential reasons you might need to break your mortgage.
- Sale of your home (you have to move).
- Purchase of a new home.
- Access equity from your home.
- Refinance your home to pay off consumer debt.
- Refinance your home to fund a new business.
- Because you got married (you combine assets and want to live together in a new home)
- Because you got divorced. (you need to split up your assets and access the equity in your home)
- Because you (or someone close to you) got sick.
- Because you lost your job or because you got a new one.
- Because you got relocated for work.
- You want to remove someone from the title.
- You want to pay off your mortgage before the maturity date.
Essentially, locking your variable rate mortgage into a fixed rate is voluntarily paying more interest to the bank, while giving up some of the flexibility to break your mortgage.
If you would like to discuss your personal financial situation, regardless if you have a mortgage or not, I’d love to talk with you. Please contact me anytime!