Renegotiating The Mortgage

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So a couple of weeks ago, we received our mortgage renewal with our current mortgage provider.
Now we have been through this one time already. 

And the last time we got our original mortgage broker to look up a new company that would offer us a better rate.

It was really worth it because our interest rate decreased by more than half.

The rates were also on the lower end as they had decreased steadily in the first five years of our mortgage. 

But we ended up paying about $1000 in lawyer fees and needed to provide different paperwork and water test since we were not staying with the same company and our house does not pass the CMHC approval criteria because it is a much older home and only has a crawlspace etc...

This time around, when the mortgage company we are with sent us the renewal they wanted to up our rate by .75%.

And although that was not atrocious for a hike, I went online and knew they could offer us better.

So we went back and forth and they finally lowered it to the highest of the lowest rates I found online and accepted it, which came up to .45% more than what we pay now and comes to about $300 more a year in payments.
You might wonder why I did that.

And I will explain. 

This mortgage company offers the option of paying off 20% yearly of the original balance owing on what we borrowed and also offers us to up our monthly payments by 20% yearly on the amount. 

Between these two options and now that we are debt free, we could have our mortgage paid off in 3 ½ years, which we plan on doing as soon as the ink is dry.

Now if you factor in the lawyer fees that we would have had to pay to change. It adds up to the same thing. 

So pay the mortgage provider or pay the lawyer. I really don’t see the difference except that I did not have to needlessly break a sweat over getting everything out and signings etc. etc… I just signed and sent by fax and we are all set for the next 5 years.

So that is my story and I’m sticking to it. And I guess our journey of paying off our home is next.

I was yo yo-ing  between investing and mortgage payoff, but we have decided that right now the idea of being debt free and mortgage free opens up avenues for us to be even more independent that even if we needed to live on very little money, we could probably do that without too much difficulty.

So here we are. 

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