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Think living in suburbia’s cheaper? Think again – Consult with Bruce Coleman, Vancouver Mortgage Broker

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ROB CARRICK – The Globe and Mail

Home for sale
(Andy Dean/Getty Images/iStockphoto)

There’s no refuge in the suburbs from Canada’s housing affordability problem.

You can buy a house for less money in the suburbs than you can in a big city, but the cost of commuting may kill almost all your savings. Some number-crunching by a public-spirited mortgage broker in the Toronto area makes this point quite clearly.

David Hughes, with the Mortgage Group Ontario Inc., divides his clients into a couple of groups with respect to attitudes toward living in suburbia: One group wants to live in the suburbs and is fine with the idea of commuting, and then there are those who want to live downtown, but can’t afford the prices. “They either buy a fixer-upper, or they run screaming to the suburbs and living with the two cars.”

Now, he finds people talking more about the cost of two working parents commuting by car every day. He explains this shift as being a result of the bigger mortgages people are taking on, and the considerable cost of buying and owning a car. “Gas at $1.30 a litre will do that to you,” he said.

No question, you’ll find house prices are cheaper outside big cities. Toronto Real Estate Board numbers suggest a spread of almost $250,000 between city homes and those in the neighbouring suburbs. But as shown in a spreadsheet created by Mr. Hughes, suburban living loses its cost advantage if you have two adults commuting by car each day. Add the effect of stress and time spent in gridlock, and suburbia looks even more costly.

Mr. Hughes uses some contentious assumptions, but his spreadsheet is a great conversation starter and a must-read for home buyers who are searching for affordability in the suburbs.

Imagine you’re part of a couple that has $50,000 for a down payment and must decide between a $500,000 house in the suburbs and a $720,000 house downtown. The suburban lifestyle comes with two cars in this example; the city dwellers get by with public transportation, taxis and car sharing or rentals. To keep things simple, we’ll assume here that your mortgage rate will be a constant 3.5 per cent and that you’ll take 25 years to pay it down.

Suburban living costs less in this example, but by only $63 per month if you add mortgage and transportation costs. And that’s with some conservative estimates by Mr. Hughes on car costs.

Using the 2013 edition of the Canadian Automobile Association’s Driving Costs publication (pdf) as a guide, he set the annual cost of commuting at $9,500 a vehicle, or $19,000 for a pair. Included in these costs are variable factors such as fuel and maintenance, and fixed expenses such as insurance, licence and registration, depreciation and financing.

Your actual car ownership costs could be lower if you drive a reliable older vehicle that has been paid off. But you may well pay more. Mr. Hughes’s CAA numbers were based on owning two Honda Civics – many families are driving at least one fancier vehicle. The estimated total number of kilometres driven each year was in the low 20,000 range – you could easily drive further in a year if you have a long commute.

The downtown household pays $6,000 annually for a pair of monthly transit passes and occasional use of taxis, car rentals or car sharing. Maybe it’s not realistic to believe a family with kids can live downtown and not own a car. But while owning a car for periodic use makes city living more expensive, it doesn’t do a thing to mitigate the high cost of commuting from the suburbs.

The case for cheaper suburban houses is undermined most when you take a long view that factors in your transportation needs both before and after your mortgage is paid off. Mr. Hughes figured on the suburban household moving to just one car after the mortgage is done, while the downtowners stay car-less.

Let’s add up what happens over 40 years – 25 with a mortgage and 15 afterward. The suburban household pays a total of $1.3-million on mortgage principal and interest and transportation. The downtown household pays just a little bit less – $33,865, to exact.

If you plan to live outside the city where you work, commuting costs must be part of your housing affordability analysis. Mr. Hughes said he delicately makes this point to clients that come in with thoughts of suburban living. “I don’t want to see anyone impoverished by their choice.”

Follow me on Twitter: @rcarrick

101 Series: Guarding Against Vancouver Real Estate Scams – Consult with Bruce Coleman, Vancouver Mortgage Broker

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Guarding Against Vancouver Real Estate Scams  

Investment scams come in all shapes and sizes. It’s a sad reflection on our society that we can no longer rely on the simple handshake to seal a deal. Even a signed written contract can be rife with sneaky “small print” that can bleed us financially dry.

Every investment of our hard earned money has to be approached with performing some form of “due diligence.” It is always wise to be use common sense and take the time to do some research. This also applies to the realm of real estate where you can also encounter scamsters and con artists.

Let’s take a look at some of the more common scams involving real estate in more detail.

Property Title Fraud Scam

These types of scams are a lot less common now than they use to be but you still have to be on guard against them. It occurs mainly with a home whose mortgage has been paid off as the scam is easier to perpetuate in those instances. Essentially, the con artist uses faked documents which they register when transferring the sale of property.

When the mortgage goes through, the scam artist can grab the mortgage money and leave you holding the bag and the deed to a property which you don’t own.

You can avoid this scam by using a real estate lawyer and especially protect your interests and investment by buying “Title Insurance.” This type of insurance also protects you from unexpected liens or where encroachment becomes a litigious issue.

Home Foreclosure Scams

This is a scam to be careful about if you find yourself in a cash crunch and might be facing foreclosure on your home by the lender. You might be approached by a supposed lender who offers you the opportunity to consolidate your loans if you transfer the property title to them and pay them some upfront fees.

The con artist will take the money you pay in upfront fees and then neglect to pay off the bills. Then, since they have the property title, they will renew the mortgage, take the money and leave you with the debt.

Scams Involving Property Investment Seminars

Always be wary of those info commercials and online advertisements about how you make tons of money investing in real estate. Although some of these seminars advertised are run by genuine financial advisors, some as not above board and are run by unscrupulous entrepreneurs who are more interested in separating you from you money.

 As it is difficult to differentiate between which ones are legitimate and which ones are less so, you should do some serious research before you pay to take these courses.

In some instances, the less legitimate seminars will try to get you to invest more money by promising some “sure to make you some big money” investment. Always remember the old adage that “if it sounds too good to be true – it probably isn’t.”

Cons Involving Home Improvement Projects

Far too many people fall victim to unscrupulous contractors or those purporting to be a contractor. Beware of any so-called contactor who comes knocking on your door and tells you that they can re-do your roof or pave your driveway on the cheap because they have some left –over materials.

These scam artists will always want to get some money up-front. However you make the up-front payment it is likely you will never see these guys again. Sometime, they may even make pretence of starting a job so they can collect that extra payment. Then, they disappear leaving you with a bigger mess. You will have to contact a legitimate contractor and pay additional money to complete the project.

Always research a potential contractor to ensure that that they are not only legitimate but that they have a solid reputation.

With anything involving real estate, your home or property investments, just remember that you should always be cautious and perform research before you invest.

Open, Closed and Convertible Mortgage Basics – Ask Bruce Coleman, Vancouver Mortgage Broker

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Open, Closed and Convertible Mortgage Basics

Choosing the right type of mortgage for your particular circumstances can be daunting. Asides from choosing between a fixed versus a variable mortgage you also have to decide on the length of the term and the amortization period for your mortgage. Every decision you make can mean the difference of thousands of dollars over the life of the mortgage.

If that wasn’t a tough enough decision to make, you also have to decide between an “Open” mortgage, a “Closed” or “Convertible” mortgage which is the focus of this article. What’s the difference and how do you decide which is the best choice?

What is an Open Mortgage?

An open mortgage is simply a mortgage which can be repaid either partially or in full during the term of the mortgage. The additional amounts you re-pay can be done so without pre-payment costs.

Such pre-payment features allow you to significantly reduce the mortgage principal. Open mortgages may also allow the additional flexibility of changing your term and without having to pay an additional fee.

These are usually the most suitable types of mortgages for those who plan to pay off their mortgage fairly early, or as soon as possible. The one drawback is that interest rates tend to slightly higher for these types of mortgages.

What is a Closed Mortgage?

For those of you who are don’t foresee your paying off the mortgage in near future then a closed mortgage might be a better option. Generally, these types of mortgages allow you to get a lower interest rate over the life of the term or mortgage.

The biggest disadvantage is that you want to renegotiate the interest rate, or make an additional prepayment, or to pay off the remaining mortgage balance, you will have to pay additional fees which can vary from lender to lender.

Most lenders allow you make a prepayment up to a percentage amount which may be as high as 20% of the value of the original mortgage.

What is a Convertible Mortgage?

A convertible mortgage is very similar to a closed mortgage. However, like the name implies, it also gives you the additional feature of converting an open mortgage to a much longer closed mortgage without having to make any prepayment fees.

Additionally you will still to able to make additional prepayment fees but the overall percentage amount may not be as high as a closed mortgage. You could be restricted to a percentage as high as 10% as of the original mortgage amount.

Which Type of Mortgage is Best?

It really depends on you current circumstances versus what you anticipate on doing over both the short term or long term. It can also very much depend on whether you choose between a fixed term or a variable term.

For most people who don’t anticipate paying off the home sooner or making really large prepayments, and who prefer a lower rate of interest, you might be more comfortable with a closed mortgage.

If you’re not certain which way to go, then you might be best advised to discuss your options with a mortgage specialist such as myself so I give you a better idea of the pros and cons as it relates not only to your situation but also for different lenders.

Vancouver Home Renovations That Don’t Pay – Consult with Bruce Coleman, Vancouver Mortgage Broker

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Vancouver Home Renovations That Don’t Pay

Asides from everyday normal maintenance that you have to perform on your Vancouver home, some folks like to go the extra distance. Major home renovation projects are usually made with the idea of increasing the property value and making the home more attractive to a prospective buyer.

Indeed, some home renovation projects can give you a great return on your investment. Re-doing and upgrading the bathrooms or kitchen are two the more profitable types of renovations you can perform. Also, adding additional space which is functional such as a family room can also help recover a considerable portion of your cash outlay for these projects.

However, there are also projects which you should seriously avoid especially if you are planning to use these projects to sell your home. Otherwise, they may be okay if you just moved into the home and plan to stay there for awhile.

Here are top home renovation projects you should avoid if you are planning to sell you home.

Don’t add a Swimming Pool

A swimming pool is great to have for the long term, but if adding one in the expectation that it will help to sell your home faster or add value to the home this could be a big mistake. Not only is a pool very expensive to install, it really doesn’t add a lot of value to your home and can actually detract a prospective buyer. A swimming pool also comes with expensive maintenance costs, potential liability issues and can be a turn off to couples who have young children.

Don’t Make the Neighbourhood Look Bad

You might think that your expensive project will “wow” prospective buyers by making it stand out from the surrounding homes. However, a project such as adding on a second story or some major remodelling to the exterior might stick out too much.

Sure, you can sell advertise the home for an additional $100,000 above the going price in the neighbourhood, but people who want to spend that type of money will generally stick to neighbourhood where homes sell in that price range throughout that enighborhood.

You can spend that $100,000 to improve your home but if you think you’re going to easily recoup that money, then you might be in for a sobering surprise.

Avoid Excessive Landscaping

Some people go overboard with landscaping projects which is fine if you plan to live in your home for a long period of time. However, you have to keep in mind that everyone has different tastes. A buyer may love you house but hate the yard and have something completely different in mind for their space. Also, extensive landscaping also requires maintenance which a prospective buyer may not wish to undertake.

Landscaping really doesn’t add a lot of value to a property. If you need to perform some landscaping to improve the appearance of your property keep it very basic and conservative.

Avoid Partial High-End Upgrades

Take a critical look at your home when you are considering upgrades. Rather than put all your renovation expenses into a single project, consider trying to spread the money about the home on smaller projects.

The reason is that if you put all your renovation money into a single project, and the rest of the home of the home is still stuck in a 1975 design, then that single high end project is going to stick out like a “sore thumb” and make the home look like a work in progress.

A prospective buyer is going to think it’s going to cost them a lot of cash to make the home look consistent throughout. So, ditch the shag carpets, get rid of the old linoleum, add some new fixtures instead and you can achieve a lot more to enhance the overall value.

Canada’s Top 100 investor neighbourhoods revealed – Ask Bruce Coleman, Vancouver Mortgage Broker

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By Grainne Burns

For brokers looking to encourage their property-investor clients into the marketplace, this may be the tool you need.

Rocky Mountain House. Brossard South. Doon. These place-names may mean little to investors now, but they have just been listed in the coveted Top 100 Neighbourhoods to invest. They — and the rest of the list — could help brokers steer their investor clients in the right direction and deepen their roles as advisors in a confusing market.

“Investors should seek local expertise to navigate the mortgage funding process. Familiarity with the real estate and mortgage financing markets is the key to a sound investment strategy in these markets,” says John Kelly, COO of Verico Financial Group.

“This is particularly true in towns with a smaller and less diverse economy, employment base, and rental market. A mortgage specialist with access to both national and local lenders as well as traditional and private financing sources is often essential to make the investment proceed, and make the investment perform,” Kelly adds.

Kelly was speaking at the launch of the Top 100 Neighbourhoods to Invest, a comprehensive guide that analyzes the top micro markets that are set to lead the country in growth.

Such exclusive data as evaluation data as media price, cash flow projections, local economic barometers, cap rate and vacancy rate are included in neighbourhood evaluation.

The guide was produced by Canadian Real Estate Wealth Magazine, with the support of RE/MAX andVerico Financial Services. “It is a massive undertaking and this year is no exception,” says Canadian Real Estate Wealth Editor Nila Sweeney. “But with so much change in the market, we felt that it was absolutely imperative we arm CREW readers with up-to-date neighbourhood-specific information.”

Details of the special guide, which is on newsstands today, will be presented live at the upcoming Canadian Real Estate Wealth Investor Forum Vancouver this weekend, October 5 and 6, at the Vancouver Convention Centre.

U.S. and Canada are altering the way housing finance works so taxpayers aren’t stuck bearing the brunt of risks – Consult with Bruce Coleman, Vancouver Mortgage Broker

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Canada and the United States are both contemplating changes to the way we finance housing

Last Wednesday Scotiabank sold the first Canadian bonds backed by consumer lines of credit in 12 years. The highly rated issue sold at market, according to a Bloomberg report, at an impressive 78 basis points over similar-term Canadian government bonds.

Critics may worry that such events signal a continuing explosion in household debt and a return of the boom and bust “wild West,” U.S.-style marketplace.

But there is another way to see it. The bonds’ risks will be borne by the issuer and investors, not unwilling and unknowing taxpayers, who back most of the mortgage risk in Canadian and U.S. housing markets.

And change is afoot in the North American housing finance system. The U.S. and Canada are market-testing new ideas, while more of them bubble through the heads of policymakers and legislators.

In the U.S., the Obama administration had swept into office amid a housing-triggered financial market crisis. Other than defending the ubiquitous and dubious middle-class “right” to home ownership and a 30-year mortgage, the administration has until recently mostly been wishing the issue away.

More activity in Congress. The most aggressive house bill, the “PATH” act championed by Jeb Hensarling, would attack head-on Fannie Mae and Freddie Mac, the government-controlled, taxpayer-backed mortgage insurers and securitizers. The agencies would be gone in five years – too long for some. A good idea, but unlikely to survive aggressive lobbying by U.S. homebuilders and mortgage originators and brokers, or to make it through the Democrat-controlled Senate, or to survive administration foot-dragging.

More narrowly focused, and aimed at smoothing the house-price rollercoaster, is a proposal from Bill Foster. The personable Representative Foster is one of those engaging gems the congressional system occasionally produces. Having cofounded as a teen an extraordinarily successful lighting controls company, and having spent a career as a particle physicist at Fermilab, Foster recently turned his understanding of control theory to politics and housing finance.

With the moral and intellectual backing of Roger Myerson, the University of Chicago Nobellist (mechanism design theory), Foster would tie maximum mortgage loan-to-value ratios, or minimum downpayments, to regional house price trends. The faster prices trend up, the higher the minimum downpayment.

The Holy Grail of housing finance – a market without taxpayer risk

This control mechanism is simple, and markets would always trend towards their natural equilibria, with lower peaks and shallower valleys. But it also would slow market responses to price signals. If bristling resource prices are driving demand for people and skills in North Dakota – or northern Alberta – why would we want to make it harder for people to move there?

Gaining bipartisan traction is the Senate’s Corker-Warner bill, for which the Obama administration kind of, sort of, has announced its backing. Corker-Warner also would fold up Fan and Fred, and replace them with another federal agency that reinsured marketable, mortgage-backed securities.

The twist is that the new securities would be 90% backed by the new federal insurer. The issuers would sell a risk-bearing 10% first-loss tranche in the private securities market. So rather than the federal agency fully guaranteeing timely payment of interest and principal, some securities buyers would take a hit if the underlying mortgage assets sank underwater.

Corker-Warner hardly removes the taxpayer from the risky mortgage market but it does hold the possibility of some risk landing with investors. That is better than having taxpayers bear the first risk and all the rest, as they now do in the U.S., and as is mostly the case in Canada.

These moves have sparked market and institutional responses. Perhaps owing to existential threat, Freddie Mac recently brought to market securities with just those characteristics, but bearing lower first-loss provisions, which the market was willing to bear at low interest rate spreads over U.S. Treasuries. Fannie Mae last week launched its roadshow for a similar product.

These are steps on the way to what market-watchers call the Holy Grail of housing finance – a residential mortgage-backed securities market that contains little or no taxpayer risk exposure.

Canada seeks the same grail – neither is there here a true private RMBS market. Finance minister Jim Flaherty has taken some steps towards it, by limiting the growth of the Canada Mortgage and Housing Corporation’s insurance book, encouraging the growth of a covered bond market, and barring new insured mortgages from covered bond pools or from backing securities other than those issued through CMHC.

The question of the day is whether a private market for taxpayer-lite RMBS soon can sprout in the U.S., or in Canada.

That brings us back to the Scotiabank bond issue. Scotia’s bonds sold at the low spreads they they did because buyers are protected from the first 17% of potential losses, enough to weather a significant market hit. That is a far cry from exposing buyers to the first 10% of losses, to be sure, but there is a world of difference between this arrangement and traditional CMHC-backed structures, whereby taxpayers, not securities investors, are exposed to 100% of potential losses.

Taken together, these are positive signs, and a message. Capital markets will work, if we let them. Political markets work too. We need not fear for their ability, eventually, to produce change.

Finn Poschmann is vice president, research, at the C.D. Howe Institute in Toronto.

Lender Logic – Ask A Vancouver Mortgage Broker

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Home Series: How to Choose the Best Energy Saving Appliances

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How to Choose the Best Energy Saving Appliances

There’s one thing that every person who resides in Vancouver knows with certainty is that your average utility bill is not going to be going down any time in the near future. If anything, the cost to keep the light on and heat our homes is almost always likely going to be on the rise.

If you aren’t one of those fortunate people who can manage to get off the grid and avoid these hefty monthly bills then you have to do whatever you can to mitigate and lower your power usage to save money.

One proactive approach that you can use to save money on your power bill can be achieved simply by getting rid of your old appliances and replacing them with new ones.

Although you might scoff at the expense, old appliances use up an incredible amount of electricity and account for a big chunk of your hydro bill. Simply put, older appliances are less efficient and more expensive to run. By replacing these old appliances with energy efficient appliances, you can end up saving a lot of money which could make it a worthwhile investment.

However, although there are many appliances which advertise themselves as being energy efficient, some are better than others. It’s a good idea to do some research before you jump at what appears to be a bargain.

How Energy Appliances are Rated

How do you tell is one appliance is more energy efficient than some other comparable model?

The law in Canada which governs energy efficient appliances comes under Canada’s Energy Efficient Regulations which requires that any appliance which is either made in this country or imported is required to have an “Energuide” label affixed to it.

This energuide label must display the amount of power that this appliance consumes and that any energy testing performed on an appliance must be done by an outside third party and is not the manufacturer of the product.

Energuide Labels include the following information:

• Consumption of average Kilowatt (kWh) annual usage for this particular appliance.
• How this appliance compares to other similar appliances when it comes to being energy efficient.
• The range of energy usage for this specific size and model on an annual basis.
• The type and size of this particular model.
• The number of this particular model.

Another feature which you should also look for when buying an energy efficient appliance is the International Energy Star symbol which may be attached right on the Energuide Label itself or on a separate portion of the appliance. The I.E.S. symbol means that the model in question meets or exceeds its technical specifications and is the most energy efficient model which you can buy for that specific class of appliance models.

Can Qualify for Government Rebates

Before you go shopping you might want to check both the B.C. and federal websites as both government agencies may allow or provide for rebates for some specific appliance models. You can get back as much as $75.00 for some appliance models.

However, when it comes right down to it, saving money can be had simply by turning the thermostat down and raising it on the air conditioner. And most importantly, if you’re not using it then turn it off!

101 Series: Tips for Vancouver Women Home Buyers – Ask Bruce Coleman, Vancouver Mortgage Broker

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Tips for Vancouver Women Home Buyers

Many new Vancouver home buyers are not only single but they are also highly paid professional women. When it comes to buying a home or condo, statistics reveal that in Canada single women not only make up as much as 20 % of the market when it comes to new home buyers, it also turns out that as many as 40% of this group are first time home buyers.

Without a doubt, real estate has become one of the hottest ways that many people have chosen to invest their money. With low interest rates and appreciating property values, a real estate investment can be substantially profitable.

Between, paying down the mortgage and despite the odd dips in the real estate market, property also generally appreciates over time. The amount of equity that you build up over the years can be a substantial plus when it comes time for you to retire. So, if you’re a single woman with a well-paying job, then why not consider investing in real estate?

If you are thinking of investing in real estate then here are a few tips to help you get started in the right direction.

Plan for the Future

Buying a home or condo should be considered as a long term investment. In most instances, you would likely have to reside in a home or condo for at least a minimum of 3 years just to break even during a robust real estate market.

The reason is that many new home buyers neglect to consider the amount of extra cash that you require for closing costs. Closing cost can range anywhere from 1.5% to as much as 3 % of the purchase price of the real estate property you are buying.

For this reason, you need to take a good hard look at your current professional career and what you predict will happen at least 5 years down the road. If you think that a transfer to another city may occur in the not so distant future then you should consider all your options before you buy.

You might decide to wait or even to use a property as rental income and hold onto it as long term investment even though you don’t continue to reside in it. So, clearly you need to some serious planning before you make such a substantial commitment to a real estate investment. Plan well and take some time to perform some valuable research before you take the plunge.

Get your Credit in Order

One of the key factors used by lenders when it comes to approving you on a mortgage application is your credit worthiness. Lenders want to know how well you pay your debt and how much debt load you are currently carrying.

You also want to be absolutely certain that you can comfortably handle the debt you incur. Although mortgage interest rates are still pretty low, they are slowly rising. Even a few small increases in rates can impact your budget when it comes time to renew your mortgage.

Also, and if you can possibly manage it, you also want to try and have a 20% down payment saved up for the property you want to buy. If you have less than a 20 % down payment then you will also be required by the lender to obtain mortgage insurance which is an extra cost above and beyond your mortgage payment.

Real estate is a great investment, especially if you’re a single professional woman who’s looking to invest but make sure you take the time to perform some research and do some serious number crunching before you commit.

Vancouver Mortgage Renewal Strategies – Consult Bruce Coleman, Vancouver Mortgage Broker

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Vancouver Mortgage Renewal Strategies

Over the years, homeowners in Vancouver who renewed their mortgages became spoiled by low interest rates which never seemed to budge upwards.

Times are “a changing” because mortgage interest rates are on the rise. As your mortgage term expires and you go to renew over the next few months or sometime over the following year, you might find that you could end up having to tighten the financial belt to account for rising interest rates.

Most homeowners who go to renew will only be slightly financially inconvenienced but others who have a more restrictive budget could find themselves more challenged to make ends meet.

Variable rates have risen up to around 2.6 % even with a good discount while a similarly discounted 5 year fixed rate has risen to just under 3.50 % which is a 0.6 % increase from just a few months ago.

If your mortgage is coming up for renewal then it might be time for you to become more proactive about making some money saving decisions well before it’s time to renew.

Although most homeowners will be able to financially manage any future increases in the mortgage rates, these rate increases may affect your cash flow for sundry pleasures such as eating out on a regular basis.

Strategies to Deal with Mortgage Renewal

The main strategy that you can use is to end your mortgage several months before it expires and obtain refinancing at current rates so you can avoid higher interest rate costs down the road.

Renew you Mortgage Early

Many lenders will allow you to renew your mortgage earlier and before its actual expiry date such as within a 90 day period so you can obtain a new 5 year term at current rates and avoid future increases.

Blend and Extend your Mortgage

Another option is that you can also do what is referred to as “blend and extend.” This means that you covert what remains on the existing balance of your current fixed rate mortgage and convert into a new loan but with a blended interest rate.

What about Penalties?

Yes, you are correct in assuming that a penalty will be involved. However, if you time the renewal properly, you can still save plenty of cash with your savings on the interest rates over five years even if you have to pay a penalty for the 2 or so months on your existing term. The savings can still be quite substantial. The key to performing this manoeuvre to your advantage is timing.

And, if you decide to perform this tactic and take your mortgage to another lender then don’t forget that you will also have to incur additional legal fees as well. However, some experts suggest that if your existing mortgage amount falls within a certain range then even the extra cost of legal fees may well be worth the expense.

Whatever you decide to do, if your mortgage is coming up for renewal in the next 6 months then now is the time to start getting advice to know and understand your options because it can save you plenty of cash if you time it right and take action at the appropriate time.