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Mortgage Refinancing
Using Your Home’s Equity
Your home is likely your biggest asset — so why not pull from its equity to pay off debts, fund renovations, or finance investments? Refinancing is an increasingly popular way to get your hands on cash when you need it most. But, before you refinance your home, you need to understand how much you can get, what the impact to your existing mortgage will be, and how to best make use of the funds. If you’re ready to talk through mortgage refinancing, I’m standing by and ready to help. If you want to find out if refinancing is the right decision for you, then keep reading.
How Does Mortgage Refinancing Work?
In simple terms, refinancing your mortgage means that you are replacing your current mortgage before it's fully paid off with a new mortgage that has different terms — and likely a different mortgage rate. You can do this with the same lender or a new one, but regardless of who you borrow from, the principle is the same: you get to pull from your home’s value and extract cash for whatever opportunity life throws your way.
What Are The Benefits Of Refinancing?
Pull Cash Quickly
Cash can be hard to come by, so when you need it, there are few better places to pull from than from your home’s equity. Rather than an unsecured line of credit, you get a fast, asset-secured loan.
Potentially Save On Interest Payments
If interest rates are lower than the one you’re paying on your current mortgage, refinancing to secure a lower interest rate may be a good idea. Even factoring in penalties for paying off your mortgage early, you may still come out with smaller monthly payments, as well as some cash in hand.
Change Your Mortgage Type
As life circumstances change, you may require the freedom that refinancing can offer. It will allow you to negotiate a new mortgage on new terms at a new rate, which can help you adjust your mortgage spending to suit your finances and lifestyle.
What Are The Main Reasons To Refinance My Home?
Debt Consolidation
Mortgages are often among the lowest-interest-rate loans you can take out, which is why refinancing can significantly help you save money. Whether it’s a credit card, car loan, or line of credit, it may be financially savvy to pull equity from your home to pay off high-interest debt.
Paying For Renovations
From additions to new kitchens, home renovation projects can become expensive — so why not pull money from your home to invest right back into your home? This has two benefits: one being the low-interest rate that you’re lending at and two being the value added to your home, which helps at both resale and future refinancing.
Big Purchases Or Investments
Major life expenses can take many forms, ranging from emergencies to investment opportunities. No matter how sudden these can appear, your home is a steady, stable asset that can be leveraged for fast cash when you need it most.
Why Choose A Mortgage Agent Vs A Big Bank?
Big banks are great for personal finances, but mortgage agents do one thing and one thing only: work hard to get you the best mortgage rate. Canadian mortgage brokers have access to a wide selection of mortgage lenders, which means that, in many cases, mortgage broker rates are lower than bank mortgage rates. It doesn’t stop at low rates, though. There are many more reasons why a mortgage agent is the best choice for your mortgage — find out what else sets us apart.
Contact Me
The Best Mortgage Rates Are Here
Do you have questions about your mortgage eligibility? Or, maybe you’re ready to apply for a mortgage or get a mortgage quote? Contact me anytime via call, text, or contact form. Find out why so many people trust mortgage agents to handle their home loans.