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Paying Too Much Mortgage 

Am I Paying Too Much for My Mortgage?

Am I Paying Too Much for My Mortgage Canada

The moment you realize you’re paying too much for your mortgage…

You just looked at your banking statement after yet another home loan payment went out to your Canadian lender of choice (bank or credit union) and are wondering; am I paying too much for my mortgage? Unless you nabbed a fixed rate back in 2021-21 when rates were rock bottom, you probably are. Is there anything you can do about it, or are you tethered to it for the duration of your mortgage term, or even longer? Please keep reading.

Honest Answers for What to Do if You Feel Your Mortgage Payments Are Too High


Drop a Big Lump Sum on It

One simple way to reduce your monthly payments, is to make a large lump sum prepayment on the mortgage. This is a common consideration for those who have some extra dough in the bank. This can work, but you will have to balance the benefit (reduced monthly payment) with the potential negative of a prepayment penalty levied by your lender.

There is generally a penalty on paying down a mortgage faster than stipulated in the original contract. Many people are surprised to learn this. Isn’t paying off debt early a good thing? Not when doing so reduces the amount the lender stood to make on the interest. Mortgage prepayment penalties are how lenders “recoup” the interest lost when a homeowner pays off a mortgage ahead of schedule. So if you ever wondered whether or not a home loan was about putting Canadians in homes, you have the answer. It’s not. It’s about the banks getting paid. Prepayment penalty charges (if appended to your contract) can vary significantly according to lender and mortgage type, so be sure to review your contract very carefully before dumping a big lump sum on the steps of your lending institution.

Get a Mortgage Renewal

If you have a mortgage renewal coming up, it represents an ideal opportunity to get a better interest and better overall terms. Unfortunately, most Canadians receive their renewal forms in the mail, sign them, and send them back to the bank. This is done out of comfort and/or fear that a renewal will be denied if they ruffle feathers by asking for a better deal. Don’t let fear get the best of you. Work with a broker who specializes in mortgage renewals in BC.

Mortgage Refinancing

Mortgage refinancing involves breaking your current mortgage (which you feel you’re paying too much for) and signing a brand new one. This option could make financial sense if you want to lower your interest rate, change your loan term, eliminate private mortgage insurance (as applicable) or switch to a fixed-rate mortgage (as applicable). As with renewals, there are a number of big picture things to consider, which leads us to the next and final step.

Connect to a Mortgage Broker

A mortgage broker works with people who are concerned that they are paying too much for their mortgage, and can help them (you!) work through the calculations regarding prepayment, renewal, and refinancing. Whether this concern exists because you entered into the mortgage without help in the first place, or your financial situation has recently changed, there is help available. Reach out via the contacts provided below.


Paying Too Much for Your Mortgage in BC?

Let’s Do Something About It!

CALL: 250.493.9111

EMAIL: hello@carlonimortgages.com