Mortgage refinancing refers to the process of renegotiating your current mortgage agreement. It allows you to pay off your existing loan and replace it with a new one that better suits your needs. When done properly, it can help reduce financial stress and get you back on track for your financial future.

Reasons to refinance:

• Leverage large increases in property value
• Use home equity for upgrades or renovations
• Your kids are heading off to college
• You’re going through a divorce
• You want to convert your mortgage from fixed to variable (or vice-versa)

Additional refinancing benefits include:

1. Lower Your Interest Rate

One reason to refinance your mortgage is to get a better interest rate. As your dedicated mortgage professionals with access to several lenders, we can shop the market for you to see if there is a better mortgage product that fits your needs.

2. Consolidate Your Debt

From credit cards and lines of credit to school loans and mortgages, there are many different types of debt. Did you know that most types of consumer debt have much higher interest rates than your mortgage? Refinancing can free up cash to help you pay these off. While it may increase your mortgage, your overall payment could be lower.

3. Modify Your Mortgage

Have you come into some extra money and want to put it towards your mortgage? Or maybe you’ve heard interest rates are rising and want to lock in at a fixed-rate for security. Talking to a mortgage specialist (like us!) can help determine what the penalties of a change may be, and if it’s worth making before your term is up.

4. Utilize Your Home Equity

Your home’s equity is the difference between your property’s market value and the balance of your mortgage. If you need funds and have equity, you can refinance your mortgage to access up to 80% of your home’s appraised value in cash.

While refinancing can help you tap into 80% of your home value, it does come with a price. If you opt to refinance during your term, it is considered to be breaking your mortgage agreement and it could end up being quite costly.  It is always best to wait until the end of the mortgage term before refinancing. Make sure you’ve planned several months in advance so you have time to weigh your options before you need to renew.

In addition, refinancing can prevent you from qualifying for default insurance. This can limit your lender choice. Lastly, you’ll be required to re-qualify under the current rates and rules. This includes passing the “stress test” again to ensure you can carry the refinanced mortgage.

If you are wondering if mortgage refinancing is right for you, please don’t hesitate to reach out to us today at 604-552-6190. We would be happy to review your current mortgage, financial goals and future plans, to help determine the best solution that fits your needs.