Your Annual Mortgage Statement, How to read it.
Hey Abbotsford and Chilliwack Mortgage Clients!
–screeching halt. record stops
I know what you are thinking right now, where is Eilisha and Jordi and their classic wit and charm?! Well let me tell you I’m thinking the same thing. Regardless I’ve been tasked with talking about annual mortgage statements. (The Fun Continues for you … 🙂
Since I lack their wit and charm I’ll save us all and get right to the point. In Early February many of you have or will receive an annual snapshot of your mortgage from last year. Your annual statement will provide you with key information to help you manage your personal mortgage.
Here are some key sections to help you understand your Annual statement better:
Account Details Should Always include:
- Remaining Amortization (focus on this! consider extra payments this year)
- Maturity Date (The date you are free to leave your mortgage holder without penalty.)
- Payment Frequency (We recommend accelerated bi-weekly)
- Interest Paid (Often tax deductible for self employed people or at home emloyees)
Fees and Premiums Paid
1st year high ratio insured (if applicable) will be listed here – you may also find any other fees the bank may have charged such as late fees.
- CMHC insurance premium
- Genworth insurance premium
- Canada Guaranty insurance premium
- Late Fees
- Admin Fees
Mortgage Account and Tax Account
Closing principle balance
- Remaining Balance on your mortgage as of the last payment of the preceding year.
- Amount paid into your property tax account if you chose to do the feature – not mandatory, but highly recommended by us!
Keep in mind it is a good idea to save this statement and many lenders now have an online or electronic service for this for convenience.
Thanks for reading and have a great weekend.