Lower your monthly payments, reduce interest costs and get out of debt faster, all while increasing your cash flow.
Are you getting the best deal on your interest rate? Do you need to access cash to pay off debt and credit cards?
Would you like to simplify your budget?
Refinancing your existing mortgage and consolidating your loans is a great way to address all the above, especially if you are carrying large monthly payments. Your Mortgage Advisor can show you how to leverage your home equity, using it as a low-cost way to borrow money that can be a better option than traditional loans or lines of credit.
Use these funds to pay off debt, help your children through secondary school, renovate your home, buy a car or an investment property, or to reinvest. In addition, take advantage of better interest rates when they drop below your current percentage.
Why Refinance a Mortgage?
Refinancing is an option that takes your current mortgage, whether mid-term (with a penalty) or at renewal (no penalty), and allows you to access equity to borrow additional money. This also creates a new term for the mortgage. Check if you can refinance by using our Mortgage Calculator.
Here are just a few reasons why refinancing your existing mortgage can make sense, depending on your situation:
Lower Your Interest Rate
Ever hear of rate-and-term refinancing? This is the process of setting up a refinancing plan for your existing mortgage balance, but with an interest rate that is lower than before. The key here is to refinance your mortgage for as little as possible – the bigger the difference, the more you will save in the form of lower monthly fees. This can add up exponentially over time.
Need to Make a Purchase? Use Your Home Equity
Your home equity has more power than many may realize. Refinancing with the help of a Mortgage Advisor – therefore getting the lowest interest rates possible – makes it possible to access most of the property’s appraised value. This is useful for everything from real estate investments to funding renovations, the latter of which will help to drive up your equity even further in the long run.
Did you know that your home equity can also be used to pay off outstanding debts? This can be useful if the interest for a refinanced mortgage is lower than that of your established line of credit, credit card bills or otherwise. Refinancing to consolidate debt is an ideal way to reduce long-term interest accruement, and we at the Mortgage Advisors are happy to help you identify whether the value of your home would sufficiently translate to such savings.
Backing Out of Your Existing Mortgage
We can help you ascertain whether it’s more feasible to prematurely end your existing mortgage contract. This grants you the ability to shop around for more modern-day, competitive rates reflective of current market conditions. We’re happy to assist with finding an ideal lender and ensure the best possible value.
Creating a Home Equity Line of Credit
As noted, your property value can further justify refinancing. If it’s high enough, we can turn your home equity into a dedicated secure loan. Like any loan, you’ll accrue interest if you owe on it, but the rates will be considerably less than a conventional line of credit. Speak with us today to find out whether this is a possibility for you.