Fixed rate versus variable, pay down or save – even for those that consider themselves to be more financially literate, mortgage renewal decisions can feel anything but clear.
An expert can help cut through that confusion with practical financial advice that transforms the complexities of money matters into holistic plans that make sense both today and decades into the future.
“Everyone is unique and how they receive information is going to be very different,” says JT Rai, a financial advisor at BlueShore Financial. “My responsibility as a financial advisor is to understand my client’s overall goals to create an approach that is going to work best for them.”
Rai’s journey in financial services began in 2013 and he’s since obtained his certified financial planner (CFP) designation. He advises clients on mortgages, retirement planning, debt pay-down strategies, estate planning and more.
That his post-secondary studies happened shortly after the 2008 financial crisis has helped Rai hone his ability to navigate even the stormiest of financial waters and economic climates.
Which leads to the question of how to approach mortgage renewals in a high interest rate environment and what you should be thinking about in advance of your mortgage maturity date. It’s a process that begins with Rai mapping out a client’s goals both in the short and long term: paying down debts, discussing major purchases on the horizon or saving for post-secondary dreams.
“There could also be things like a home renovation in the mix, or other expenses, and clients may be looking to take out some equity for that,” Rai adds. “Before making a recommendation on the best mortgage renewal strategy, I always learn more about the client’s full picture and what their goals are over the next five to 10 years and factor those in.”
Perhaps the biggest talking point in the mortgage universe is the choice between fixed or variable. It’s here that Rai again leans on his expertise in future proofing – for those who are comfortable with a little more risk, the variable rate is the answer. But for others who want to stay the course, a fixed rate makes more sense. An advisor can help you make an informed decision.
Those who find themselves in their highest earning years—ages 45 to 65—are inevitably going to face transformative financial decisions. These may include renewing a mortgage, maximizing RRSP and TFSA contributions, retirement planning or possibly helping fund a child’s post-secondary education. Reviewing your full range of mortgage options at renewal time is a key step in building a well-rounded financial plan—one that aligns with your budget and long-term goals. BlueShore’s Mortgage Cashback Program supports eligible clients with cashback offers ranging from $1,000 to $4,500, helping you get more value from your mortgage as you plan for the future.
As the golden years of retirement approach, two major considerations come to the forefront: insurance needs and the choice between accelerated payments and the minimum required. For some, the objective is to pay down their mortgage as aggressively as possible in order to retire debt-free in the near future.
“For other clients who are looking to finance projects, the cash flow could be limited because there’s only so many buckets you can add to,” Rai says. “It comes back to having that conversation with their advisor and determining how much needs to go into what bucket.”
Whenever a mortgage renewal takes place, Rai sees to it that his clients take into account their overall financial plan. This includes ensuring they are also considering things like disability and life insurance to protect their future, and discussing how those options work in terms of extended coverage, cash flow needs and where gaps may arise.
“Your mortgage is likely the biggest loan you will ever have and your biggest financial decision—it also has the greatest impact on your financial health and overall lifestyle,” says Rai. “It is important to have a trusted financial advisor that can see the big picture, and help explain all the mortgage options clearly, so you end up with the best solution.”
Whether you're renewing your mortgage, planning for retirement or figuring out how to juggle saving and spending, Rai’s client-first approach offers clarity and confidence through every stage of life. It all starts with a conversation—one that considers your goals, values and the financial realities unique to you.
To learn more or work with a financial advisor, visit BlueShoreFinancial.com and take the first step toward a plan that works for today and builds peace of mind for tomorrow.
