Tiff Macklem, Governor of the Bank of Canada, provided comforting news about rates in July when he said, “our message to Canadians is that interest rates are very low and they’re going to be there for a long time.”
Lower rates are good news for homeowners in Brampton and the GTA who want to access their home equity through a refinance (min 20% home equity) for a low-cost way to get needed funds.
Everyone is different but there are some common reasons homeowners determine that it makes sense to refinance:
- Financial reset. If you have too much high-interest debt, you may be able to roll that debt into a low-interest mortgage for one manageable monthly payment. You can get immediate cash-flow relief and save thousands in interest. This financial reset can give you much needed breathing room and really help if you are struggling to keep up with your bills. It is also a great way to improve and protect your credit score. Debt restructuring is one of the primary reasons homeowners refinance. If you need to refinance for cash flow relief but do not qualify, I have access to other financing options that can help.
- Renovate. Canadians are renovating their homes to adapt to our new covid lifestyles. We’re spending more time at home and are looking at renovations to improve the quality of our lives, or we’re renovating for functionality like building a new office. The value of your home may also increase with the renovations which is a nice additional benefit.
- Dream home. If you’ve found the perfect cottage, chalet, or the retirement home of your dreams, refinancing may be the way to make that purchase happen now if you’re not quite ready to sell your primary residence.
- Investing in property. A rental property can give you a great wealth building opportunity and a source of retirement income. You may be able to purchase the property through a refinance.
- Large expenditures. You may be able to get the funds you need for major expenses (new business venture, tuition, wedding etc.): a much better strategy than loading it all onto high-interest credit cards.
If you are interested, I can provide you with a personalized cost/benefit analysis so you can determine whether a refinance makes sense. This is an important step because you will need to break your current mortgage to complete the refinance, and breaking your mortgage comes with a fee. This amount of the fee depends on several factors so it’s best to get in touch to discuss.
I have access to dozens of lenders to help you refinance, including alternative lenders that have less stringent qualification guidelines. It is not expected that mortgage rates will go much lower so if you can benefit, there may not be any benefit to waiting to see if you can get a better deal later.
My job is to help you pay down debt, create financial security, and make sure that homeowners in Brampton and the GTA can enjoy life to the fullest!
