Mortgage Refinance
Refinancing means renegotiating your existing mortgage and replacing it with a new one. Homeowners refinance for various reasons such as:
To have a shorter term for their mortgage.
Take advantage of lower interest rates in order to decrease their mortgage payments.
Switching between a fixed rate and variable rate mortgage.
Leveraging their home equity to take out money; when your new mortgage is greater than what you owe on your home.
Consolidate high-interest debt payment from a credit card, car loan or other lines of credit.
With the money taken out of a refinance, homeowners can spend it on:
Home renovations or repairs
Tuition costs
Investing for your future, including RRSP or topping off your TFSA for additional tax free gains.
How Does It Work?
Generally you refinance at the end of the term, or near the end to avoid any prepayment penalties. It's best to refinance when rates drop so it offsets the additional costs of refinancing. Mortgage agents (like myself) can help you refinance your current mortgage by comparing rates from many lenders.
Frequently asked Questions
How to negotiate your mortgage renewal?
Before your term is up, shop around for a better rate. You may be able to leverage it if you decide to stay with your current lender.
How early can you renew your mortgage?
Your mortgage can be renewed up to 150 days before the maturity date.
Will you be credit checked before renewal?
Typically lenders will consider doing a credit check before processing your renewal.