Mortgage Refinance and Debt Consolidation
What does refinancing mean? Refinancing is essentially taking out a new mortgage to replace the one you currently have. With the recent jump in housing prices over the past 5 years, refinancing or debt consolidation has become very common practice all across Canada. Canadians have realized that the equity in their home can be used in many ways to enhance their standard of living. Whether you need to pay down debt, acquire assets, or enhance your wealth, refinancing has become one of the most popular financial decisions consumers are making. New mortgage programs allow you to access more equity than ever from the value of your home, and at a time of historically low interest rates, it just makes sense to take advantage of this opportunity.
Why Refinance Your Mortgage?
There are many reasons to refinance your mortgage. Having financing secured by real estate allows you to borrow money at the lowest possible interest rates. Because of this many people are able to take advantage of the equity in their homes to enhance their wealth, acquire assets, or simply live at a higher level such as:
Pulling equity out of your home at today's great interest rates can save you as much as 24% in interest charges! This allows people to eliminate and consolidate high interest debts such as:
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Credit Cards
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Car Loans
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Student Loans
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Lines of Credit
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Personal loans
It can also be used to escape from or avoid personal financial problems such as:
Debt Consolidation Scenario
We helps many clients leverage the equity in their home to consolidate debt and lower their overall payments. The following example was the case for one of our clients. It clearly shows the money they were able to save each month.
|
Before Debt Consolidation |
|
Existing Mortgage |
|
Property Value |
$250,000 |
|
Mortgage Balance |
$145,000 |
|
Interest Rate |
5.50% |
|
Term |
5 Years |
|
Monthly Payments |
|
Credit Cards (19.9%) |
$400/mth |
|
Car Loan (7.5%) |
$550/mth |
|
Mortgage Payment |
$885/mth |
| Total Payments = |
$1,835/mth |
|
|
After Debt Consolidation |
|
New Mortgage |
|
Property Value |
$250,000 |
|
Mortgage Balance |
$170,000 |
|
Interest Rate |
3.79% |
|
Term |
5 Years |
|
Monthly Payments |
|
Credit Cards (19.9%) |
$0/mth |
|
Car Loan (7.5%) |
$0/mth |
|
New Mortgage Payment |
$875/mth |
| Total Payments = |
$875/mth |
|
As the example shows, we were able to refinance their current mortgage to pay off two outstanding debts and significantly lower their total monthly payments. They saved a total of $960 per month and have been able to use this money for many other needs.
Frequently Asked Questions
What if I have bad Credit?
We have access to many alternative lenders who work with people that the traditional banks and lenders will not work with. Our lenders look past a person's credit score.
What does it cost?
The costs to refinance your home do not have to be paid up front. They can be included in the new mortgage established. Costs can include property appraisal, legal fees to register the new mortgage, penalties from your current institution to break the mortgage, lender insurance premiums and in extreme cases a small broker fee.
Can I simply switch my existing mortgage?
Yes, if your existing mortgage is up for renewal within the next 120 days we can switch the existing loan to one of our lenders at a rate that is less than your bank will charge and there will be no legal fees, penalties or broker fees payable by you.
What if I am locked into my current mortgage?
We can always look at options to either break your current mortgage or acquire secondary financing. Our mortgage professionals can do all the calculations for you to determine the best option for you.
Getting Started
In order to take advantage of this program you must be a home owner and you must have equity in your home. A question we get many times is "Can I get a mortgage for more than the value of my home". The answer is NO! Lenders will never finance a property for more than the appraised value!
The first step is to talk to one of our mortgage professionals. They can help you calculate how much you can save and determine if refinancing is the correct decision for you.
We are always available to help and there is never a cost to you.
Get Pre-Approved For Your Mortgage Refinance...Its Quick And Easy!
Mortgage Refinance Application
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