Explanation of Refinancing
Want more options? Refinancing is probably the solution. Refinancing your mortgage means going again to the negotiation desk and replacing your old mortgage with a brand new one – that offers you extra! You borrow against the equity in your home. You can do this at any point during your mortgage term, however, there can be different penalties depending on your term and guidelines. Tell us your future plans and we will assist you to decide if refinancing is the proper move for you.
Investing or renovating?
Don’t waste time speculating what your lender will approve you for! Refinancing to invest in stocks, bonds, mutual funds, and/or RRSPs is acceptable. You also can refinance to buy an investment property, spruce up your current property, or further your education. Providing cash to a member of the family for a down payment is another motive to refinance your current mortgage. If you’ve got the desire to develop your asset portfolio, let us help you locate the mortgage product for your specific needs.
Refinance to Consolidate Debt
Overwhelmed by large debts? Refinancing your mortgage permits you to transfer high-interest debt (like automobile loans) to a lower interest debt (like your mortgage) to decrease interest debt, which can save you thousands. Since there can be fees involved, it will take some analysis to decide if the numbers work in your favor. We can assist you to decide if refinancing is the sensible way to manage your debt.
Capitalizing on the possible current low rates? Keep in mind there can be a fee to renegotiate your mortgage. The penalty amount will range depending on your current rate (fixed vs. variable) and the specific terms you agreed to when first getting your mortgage. In some cases, the financial savings for the low fee offers justification to make the change. Don’t get lost in the math. We can determine if it is smarter to stick it out or start with a new mortgage option.
Wondering how much cash you can potentially access? The maximum quantity you may refinance for is 80% of your property value, also referred to as Loan to Value (LTV). To calculate this, we need to know the current value of your property. Recent property assessments can be a good starting point. But lenders will require more precision and will send an independent appraiser to inspect your property and provide the correct current market value. Lenders will also think about your current income, debt, and credit score when deciding how much money they may be comfortable with providing you now.
Refinance made Easy
Refinancing can be a straightforward process that we explore with customers on a day-to-day basis. Unlike banks that know a little about a lot, we are mortgage experts, specializing in purchasing, renewing, and refinancing. If you have your paperwork in order and time for the appraiser to do their bit, refinancing can be a seamless experience. It may also be the smartest economic move you’ll ever make. And if it isn’t, we’ll educate you on why not!
Contact us to show you what Refinancing may do for you!