Mortgage Refinance

It is important to remember, that you’re not chained to a mortgage as it was initially conceived for the rest of your life. Existing mortgage holders have options, and that’s where refinancing can come into play.

One of the best reasons to refinance a mortgage is that you may be able to access a lower interest rate than when you initially bought your home. Perhaps rates in the industry have dropped overall since then, or perhaps your situation has improved, either through increased income or improved credit. If that’s the case, a refinancing of your mortgage at the right time could save you a lot of money while you pay off what remains owing on your home.

Refinancing your mortgage can also be a way to get a better handle on your overall debt load. If you have some high interest debt, there is a possibility with some lenders to consolidate other debt into a refinanced mortgage, allowing you to pay back all that you owe at a lower interest rate.

Refinancing your home can also allow you to access some of the equity that you currently have invested in your residence. If you have a large expense coming up, such as college tuition for a child or the purchase of a new car, this can be a great way to pay for it with your existing equity rather than taking on newer, higher interest debts.

We can help you see if refinancing is right for you. Analyzing things like the benefits to be gained versus the penalties that may be built into your existing mortgage will help you decide if this is the best financial move for you and your family.

10 Things To Consider Before Your Mortage Renews

1. Have you explored all your options and had a second opinion? Once you receive your mortgage renewal statement from your existing bank, there’s nothing easier than simply signing on for another term. But while this may make sense in many cases, your family or financial situation may have changed over time. We can look for opportunities that could better meet your needs right now. Also, did you get the best rate from your existing bank? Let us shop the entire Canadian mortgage market to ensure that you did… you simply then compare our quote with what your bank has offered you to ensure they were competitive and fair… after all haven’t you earned the best possible rate based on your loyalty to them for the last few years?

2. Are you comfortable with your payments? If you’ve been feeling financially strapped each month making your mortgage payments, this could be the time to reduce them to a more easily managed level. On the other hand, if you’re earning more, why not pay down your mortgage faster and save thousands of dollars in interest over time?

3. Do you need cash flow for other things? Your priorities may have shifted since you first bought your home, and your cash flow needs can shift too. Things like paying for a child’s university education, planning a career change, or a major purchase such as a vacation property may call for spending money on things other than your home. You may be able to refinance your mortgage to take this into account.

4. Can you handle fluctuating rates? Some homeowners are nervous about any hikes in interest rates, while others are comfortable to go with the flow. Rates are tough to predict. It’s best to base your decision on your personal situation, not what you read in the news, and tailor your mortgage renewal around your needs. We can help you decide whether to opt for fixed or variable rates — and we don’t want you to lose any sleep over your decision!

5. Will you sell soon? If you are likely to sell soon, consider a shorter-term mortgage or one that has flexible terms so you’re not penalized if you sell your house before the mortgage comes due.

6. Are you thinking about a major renovation? You know that projects such as a new kitchen or an addition can make your home more valuable. But the cost of having the work done can tie up a lot of money. Before you renew, look at all your financing options, which may include getting an additional line of credit or keeping your monthly mortgage payments low so you have money on hand to finance the renovations.

7. When do you want to be “mortgage-free”? If you’re planning an extended time away from work or perhaps an early retirement, it may make sense to pay down your mortgage sooner rather than later. While increasing your payments will raise your monthly costs now, you’ll ultimately save on interest in the long term and can prepare for that fabulous, mortgage-free lifestyle.

8. Could you use your home equity to fulfill other goals? Refinancing your mortgage can be one way to free up cash you need for other things, which could even include buying another property. Mortgage renewal time is an ideal occasion to review all your options.

9. Have your insurance needs changed? If your financial situation has changed since you first took out your mortgage, review whether you need the same level of insurance in place to cover mortgage obligations.

10. Are you getting the best rates and terms? In a competitive mortgage environment, your good credit history can make refinancing work to your advantage. We analyze mortgage markets daily to ensure you don’t miss any money-saving opportunities.