Refinancing your Mortgage
There are many reasons to refinance your mortgage. Many people refinance to do home improvements, purchase another property, pay for post secondary education or to payout debts and save money! If interest rates are lower than when you took out your mortgage or if you have higher interest rate debt, refinancing can get your monthly payments back under control while paying down your debt – not just the interest.
What is Mortgage Refinancing?
Refinancing is taking out a new mortgage, repaying the existing mortgage and borrowing against your equity. The maximum you can borrow is 80% of the home's current appraised value less any outstanding mortgage and penalty. There is typically a cost to do this as the old mortgage must be discharged and the new mortgage registered on title. Some lenders offer in house legals to cut down on the cost.
Many people carry credit card debt or lines of credit that are at higher interest rate than current mortgages and unlocking your equity to save the interest costs can not only improve monthly cash flow but in many cases reduce the years you have to pay on your mortgage. You can use your mortgage equity to pay off your bills sooner and with your bills consolidated, your interest and payments will dramatically reduce. Over-extended credit card and consumer debt is the number one problem Canadians face today. We can provide a no cost, no obligation consultation to determine if there are interest savings available to you.