refinance mortgage credit cards

Refinancing Your Mortgage

Many of our clients are applying to refinance a mortgage in order to keep on track with their financial goals. A home refinance can be beneficial in many ways when todays’ mortgage rates are at historically low levels and you have available equity in your home. A debt consolidation and monthly budgeting is all about cash flow. Paying off high interest credit cards and other debts using your equity can help increase savings and take the stress away from paying multiple debts and accruing interest on them. Our clients average monthly cash flow savings of over $1000  when paying off high interest , high monthly payment credit cards, credit lines, car loans and other personal debts. Even with paying a penalty to break your mortgage term early, it is almost always more beneficial to do so and payoff higher interest debts especially when mortgage rates are as low as today’s.

 

Refinancing Debts – Improve Your Monthly Cash Flow

Before RefinancingAfter
Home Value$500,000$500,000
Mortgage Balance$250,000$320,000
Interest Rate3.75%2.20%
Mortgage Payment$1282$1214
Loan and Credit Card Balances$70,000$0
Monthly Loan and Credit Card Payments$2200$0
Total Monthly Payments$3482$1214
MONTHLY SAVINGS:
$2268.00

 

A simple online application – Get approved for mortgage refinancing anywhere in Ontario. Approvals in less than 24 hours.

online mortgage application

 

Today’s Mortgage Refinance Rates

5 Year Variable
2.30%
120 day rate hold
20% prepayment privilege
portable
multiple payment options
 
5 Year Fixed
2.39%
45 day rate hold
15% prepayment privilege
portable
multiple payment options
*CMHC Insured only
5 Year Fixed
2.49%
90 day rate hold
15% prepayment privilege
portable
multiple payment options
 
3 Year Fixed
2.20%
60 day rate hold
15% prepayment privilege
portable
multiple payment options
 

 

Mortgage Refinance Info and Tips

One way to greatly improve your overall financial health is to consider a mortgage refinance. A debt consolidation refinance is a strategy to eliminate existing debts and consolidate them in full. Doing this can result in benefits that will make changes to your overall financial scenario and monthly cash flow will probably be improved dramatically , especially when property loan rates are at very low levels. The usual debts that are paid off include credit cards and lines of credit ,car loans, personal loans, consumer proposals or any debt that is costing you monthly in both high payments and interest. As credit card & credit line lenders charge over 10% interest on average , these things are a priority to pay off. Monthly instalments are typically 3% on the outstanding balance and due to the interest charges, the balance is paid off very slowly when minimum payments are made. The higher payment and interest rate items that you have should be considered a priority to pay off first. Make a directory of your debts and choose the ones that are costing you the most on a monthly basis.

Let’s look at how you should consider when its time to refinance your home and save money. A mortgage borrower should consider applying to refinance a home loan once the combined balance in revolving debts is somewhere around $25,000, or when monthly payments reach $500-$800 for example. Otherwise these outstanding debts can begin to severely affect monthly cash flow. On average, you can probably look at saving over $800 – $1500 a month when reducing payments from credit cards, , credit lines , consumer proposals , other debts and higher rate mortgages. Also consider including car loans when you remortgage your home. These loans tend to have payments averaging $400 – $500 monthly , at rates around 6% to 13%. You can also refinance your mortgage to payout an existing consumer proposal balance. Improve your credit score years ahead of schedule and consider doing so today, visit this page refinance consumer proposal . We have a large network of private mortgage lenders. If you are behind on your mortgage payments we can help you stop a power of sale.

Save money today and start taking advantage of the benefits provided from home loan refinancing. We can look at your debt balances, interest rates and monthly payments being charged , including your existing house loan. An estimate can easily be worked out for you as to how much money you will save. Fees are commonly minimal to cancel your existing mortgage loan and 99% of the time, brokers do not charge you a fee for arranging your refinance as they are compensated by the lender. You will need a lawyer in Canada to process the remortgage transaction. Legal fees for refinancing transactions are around the $750 – $900 mark. Some lenders have promotions currently where legal fees are covered by them if you are using their provided legal service, while still offering competitive low property finance loan rates. Lenders will require either a full appraisal of your house to determine the current market value or a computer based automated appraisal where there is no actual visit to your property by an appraiser.

 

Refinancing a Mortgage – A Simple & Efficient Process

Step 1: Complete the online application so we can begin to review your basic information including employment and income history, credit rating, existing mortgage and property details. We will confirm your new remortgage details with you before submitting the application to one of our lenders.

Step 2: A mortgage approval will be obtained for you in approximately 4 to 24 hours on average. The refinance approval will be sent to you by email so you can review & confirm the details.

Step 3: You will sign & date the mortgage refinance approval along with some other related forms and email or fax us any required documents that the lender specifies on the approval. These documents usually include income confirmation via employment letter & recent paystub, copy of existing mortgage statement, property tax statement, void cheque for new mortgage payments and your lawyers contact information.

Step 4: We will submit your documentation to the lender who will review to make sure all conditions are satisfied. The lender will then send the new mortgage instructions to your lawyers’ office so they can begin to prepare the refinance for closing. Your lawyer will take care of discharging your existing mortgage by contacting your current lender.

Step 5: You will visit your lawyers office to sign new legal documents for the mortgage. The lawyer will payout your existing mortgage using the new mortgage funds and payout any debts or other items as well. Any money left over after debt payouts or for equity take out purposes, is usually given to you by cheque at the lawyers office.

Mortgage Refinancing - How it Works