Mortgage Refinancing – A Simple Process

Complete the quick online quote form so we can begin to review your basic information, mortgage and property details. There is no credit check at this point or obligations, etc. We are here to answer your questions about mortgage refinancing and give you detailed options.

 

Benefits of Refinancing a Mortgage

Many of our clients are applying for mortgage refinancing 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. We use a refinance calculator to determine your monthly savings.  Home equity loans are a great way to save money and lower your monthly mortgage costs.

– Payoff High Interest Credit Cards / Loans
– Lower Your Monthly Payments
– Use Refinancing to Renovate Your Home
– Get Cash Out for Any Purpose

Mortgage Refinance vs Mortgage Renewal

A common scenario that borrowers have to deal with every 5 years or so is their mortgage renewal. Typically this is a time to consider if a mortgage refinance may be a good strategy. You can either add a line of credit (HELOC) to your mortgage with certain banks or lenders, or you can increase the mortgage and take cash out , ready to use right away. If you are needing a renovation or home improvements, paying off high interest debts,  additional funds for investing, or just need money for some future plans, this is the time to apply for a refinance. Think about your situation at the time of your mortgage renewal and whether it’s a good time to look at refinancing your mortgage rather than just proceeding with a mortgage renewal. Fill out the refinancing quote form above so we can discuss your particular situation and needs.

HELOC vs Mortgage Refinancing

Some banks and lenders will allow you to add a HELOC (Home Equity Line of Credit) to your property.  They can do this by adding a second charge to the property or add the product under your existing collateral mortgage charge. This allows you to keep the rate on your mortgage the same and add a HELOC at the prime rate plus 0.50% on average. Payments are lower as they are interest only and not amortized like a mortgage typically is. For example, you may have a $500k mortgage and the bank will add a $150k credit limit HELOC. This is done to a maximum total loan to value of 65% as per new rules added by the regulator OSFI in recent years. So if your house is valued or appraised at $1 million , the HELOC portion cannot exceed 65% of that value.

 



Refinancing Debts – Improve Cash Flow

BeforeAfter
Mortgage $500,000 @ 5%Mortgage Balance $570,000 @ 5%
Car Loan $20,000 @ 8% Car Loan $0
Credit Cards $30,000 @ 20%Credit Cards $0
Personal Loan $20,000 @ 10%Personal Loan $0
Total Monthly Payments $4500Total Payments $3000 = $1500 Monthly Savings!

 

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Mortgage Refinance Info and Tips

One way to greatly improve your overall financial health is to consider a mortgage refinance. Lenders in Canada can offer a debt consolidation refinance as 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% to 26% interest , these items are a priority to pay off. Monthly installments 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 list of your debts and choose the ones that are costing you the most on a monthly basis.

We will use a refinancing calculator and software to determine your monthly savings.

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 or more for example. Otherwise these outstanding debts can begin to severely affect monthly cash flow. On average, you can probably look at saving $1000+ 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 – $1000 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 $1200 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.

 

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