If you’re thinking of refinancing your mortgage, you should know that it is a great time to do so. Whether you are interested in saving thousands of dollars annually, financing your big-ticket dreams, opening a business, making an investment or covering necessary expenses such as education and elder care, refinancing could be the answer. Canadian mortgage rates are the lowest they’ve been in history and there many beneficial options to consider. If you want to get on top of your finances, there couldn’t be a better time to refinance your mortgage.
Why Refinance Your Mortgage?
There are many legitimate reasons for doing so, which will depend on your unique needs and goals. Some of the most common reasons for refinancing include the following:
lower your interest rates
purchase investment property
consolidate high-interest debts
change from variable to fixed-rate mortgage
speed up the home equity building process
increase your home’s market value
make home renovation
big-ticket purchase (i.e. car, boat, vacation, art investment, etc.)
pay for the college/university tuition of a child or grandchild
cover medical expenses
care for an elderly family member
top up your Registered Retirement Savings Plan
receive income tax credit
The Steps to Mortgage Refinancing
Before you can successfully refinance your mortgage, you will need to understand all the additional costs that will be involved in this transaction. It is important to carefully weigh out the costs of a mortgage refinance arrangement compared to the benefits you will receive. These costs may include the following:
High Ratio Insurance (if applicable)
As your mortgage agent, I will work with you to determine the next steps in the refinancing process, which will vary depending on your unique needs, your goals for refinancing, how long you plan to stay in your home and many other factors. With a career’s worth of knowledge and experience, I have the tools to make sure you get the new mortgage that works for you, now and into the future.
How Much Could You Save?
With mortgage rates at historic lows, homebuyers can now achieve surprising savings, especially with the help of an experienced mortgage agent. Savings are based on the difference between your new and current rate and how much time you have left on your current term. In general, more time left means larger potential savings if you refinance at a reduced rate.
Mortgage Amount Interest Rate Remaining Year Refinance Saving
Lees Family $195,000 4.8% 3 $6,485
Smiths Family $275,000 4% 4 $6,378.91
Joes Family $428,600 5.12% 4 $23,172.96
Singh Family $428,600 3.75% 4 $7,556.68
* The above examples are for demonstration purposes only. Verify all calculations with your Mortgage consultant.
Of course, every person’s situation is unique when it comes to their mortgage and the potential savings from refinancing. To learn how much you could save, contact me.