Refinancing

The majority of house owners attempting to refinance a mortgage are looking to accomplish one among the following:

• Consolidate Debt (credit cards/loans),
• Taking advantage of lower interest rates,
• or Access funds for other important projects, such as
  • Home renovations investment/rental property,
  • Buy an investment/rental property,
  • Planning for your children’s future education, or
  • Dreaming about great vacation.

Put your home equity to work for you…

You have worked hard to build the equity in your home and now might be the time to get the equity, working for you. You may qualify to up to 95%* value of your home (Normally 80%) – one of the biggest assets you may own.

1. To take advantage of low-interest rates

Don’t let penalties deter you; first, know the numbers. Breaking your contract for a lower interest rate can save you money over time, depending on the penalty and the size of your outstanding mortgage. If you hold a variable rate mortgage, then expect to pay a penalty of three months interest, and if you hold a fixed rate mortgage, then you will pay the greater of three months interest or interest rate differential penalty (IRD).

2. To access equity (cash) in your home

Through refinancing, you can increase up to 80 percent of your house’s value less any outstanding mortgages. That’s extra money for investment opportunities, home renovations, or your children’s education. There are several ways to access this equity including breaking your mortgage, taking on a home equity line of credit, or blending and extending your mortgage to your current lender.

3. To consolidate debt

If you have enough equity in your home, you will be able to pay-out high-interest debt through a refinance. For example, if you have a number of outstanding debts, such as a car loan, a line of credit, or credit card bills, you may be able to consolidate all of the debt through the variety of refinancing options available.

Methods of refinancing your mortgage

There are several options available to you when considering a refinance which include: breaking your mortgage contract early, taking out a home equity line of credit or blending and extending your mortgage to your current lender.

1. Break your existing mortgage contract early:

You can consider breaking your mortgage early if you want to obtain a lower interest rate or access equity from your home. In this case, you can do away with your existing mortgage and take on a brand new one with any lender.

2. Add a home equity line of credit:

A home equity line of credit gives you access to the equity in your home at your own discretion. You are responsible for interest-only payments each month on the outstanding balance. You can access a home equity line of credit through your existing lender and a small subset of other lenders.

3. Blend and extend your existing mortgage:

Your current mortgage granter might offer you a ‘blended rate’; essentially, a ‘blend’ of your current mortgage rate plus any additional money you borrow at current market rates. Blended rates are almost always higher than the most competitive mortgage rates on the market, so make sure you compare the blended rate against the savings if you break your mortgage.

We work with many lenders to get you the best rate, best term, as well as 95% ltv and the features you want so you can use the equity in your home. It’s just one way we can get your mortgage working for you!