Understanding your mortgage statement can be a common challenge when navigating a new home purchase. This can make life for mortgage holders confusing and stressful. We want to help you feel clear and confident about your finances, which is the core of our mission at Mortgage Connection.
Mortgage Statement Definition: A mortgage statement is a summary document your lender, like a bank or credit union, sends you. It shows important details about your mortgage loan, including your current balance, interest rate, and payment history.
Lenders typically send these statements at least once a year, but you can often request one at any time.
What to Find on Your Mortgage Statement
When you get your mortgage statement, you’ll see a lot of numbers and terms. It’s helpful to know what you’re looking at. Here’s a breakdown of the key information typically included:
- Current Mortgage Balance: This is the total amount you still owe on your mortgage loan. It’s the most important number on the page.
- Interest Rate: You’ll see the rate you currently pay on your loan. This is especially important to check if you have a variable-rate mortgage.
- Principal & Interest Paid: This section shows how much of your payments went toward your loan balance versus how much went to interest. You’ll notice more goes to principal over time. You can experiment with how different payment schedules affect this balance using a handy mortgage calculator.
- Remaining Term & Amortization: This tells you how much time is left in your current mortgage term and the total time left to pay off the entire mortgage. This is crucial information as you approach your mortgage renewal date.
- Payment History: You can see a record of the payments you’ve made since your last statement.
- Property Tax Information: If your property taxes are paid through your mortgage, this section will show the amount paid.
- Lender Contact Information: This shows you how to contact your mortgage lender if you have questions or concerns.
Why You Should Review Your Statement
It’s a good habit to look over your mortgage statement as soon as you receive it. It’s an important document that helps you stay informed about one of your biggest financial commitments. A quick review can give you peace of mind.
Check for Accuracy
Take a moment to confirm that the balance and payment history look correct. If you spot any potential errors, you should contact your lender right away to sort them out. Mistakes can happen, and catching them early is always better.
Plan for Your Renewal
Your statement shows you when your mortgage term ends, which is your renewal date. This date is your reminder to start thinking about your options. You’ll have time to decide if you want to stay with your current lender or look for different terms that better fit your goals.
When You Need Your Mortgage Statement
Beyond a regular review, your mortgage statement is a key piece of paperwork you’ll need in certain situations. It serves as an official record of your mortgage. Think of it as a financial passport for your property.
Sell or Refinance Your Property
If you plan to sell your home or refinance your mortgage, your new lender or lawyer will ask for a recent mortgage statement. It provides them with an official record of your existing mortgage balance. This information helps them calculate payoff amounts accurately.
Provide Financial Proof
A statement serves as proof of your mortgage details for other financial applications, like getting a mortgage pre-approval for a new property. Lenders may accept an annual statement for some things. But if you’ve made extra payments, you might need to request a more current one to show your updated balance.
How to Get a Copy of Your Mortgage Statement
Lenders make it simple to access your mortgage details. Your statement is usually sent to you automatically. You can also get it on demand when you need it.
Annual Statements
Most lenders will mail you a paper statement or send a digital copy once a year. This usually happens between January and March and covers the previous year. You can keep this with your other important financial documents.
Online Banking & Mobile Apps
You can often view or download your mortgage statement anytime through your lender’s online banking portal or mobile app. Just log in to your account and look for your mortgage details. This is usually the quickest way to get a copy.
Request an Up-to-Date Copy
If you need a statement that reflects recent changes, such as when applying for a second mortgage, you can contact your lender directly to request one. They can generate a statement with the most current information for you. Some lenders may charge a small fee for this service.
Let Us Review Your Statement with You
Your mortgage statement contains a lot of information that can influence your financial future. We can help you make sense of it all and identify opportunities you might not see. You don’t have to figure it all out on your own.
As experienced mortgage brokers in Calgary, we can sit down with you and go over your statement. We can explain what it all means for your financial health. Together, we can explore your options for renewal or refinancing to see if you could benefit from a different mortgage solution.
The team at Mortgage Connection is here to bring transparency and clarity to your mortgage journey. Reach out to us today, and let’s look at your mortgage statement together. We can help you make a fully informed decision for your future.
