There are many reasons you may decide to refinance your property. Perhaps you want to take advantage of lower interest rates, make some investments, buy a second property or start a business. Whatever the reason, borrowing against your home is an excellent way to access money as mortgage interest rates are significantly lower than conventional means of borrowing.
Interest rates in Canada are at one of the lowest points in decades, but that doesn’t guarantee they’ll stay there. If you have been considering refinancing your property, now may be the right time to do so. By refinancing your mortgage now, you may be able to:
Lower your monthly payment
Reduce your amortization and pay off your mortgage years sooner
Save thousands in interest over the life of your loan
Use a portion of your new mortgage to consolidate high-interest debts
Start a business, take a trip, pay for college… It’s your money, you decide
Methods of Refinancing
Refinancing comes with several options, many of which commonly include blending and extending, breaking your contract early and adding a home equity line of credit or HELOC:
Blend and Extend – Under this option, you may qualify for a blended mortgage in which the lender “blends” your existing rate with whatever you borrow at the current market rate.
Breaking Your Contract Early – Depending on the terms and conditions outlined in your loan, it may be worthwhile to break your existing contract early in order to access your home’s equity or secure a lower interest rate.
Home Equity Line of Credit – A HELOC provides access to the current equity in your home in the form of a revolving line of credit (generally used for large expenses or for consolidating other high-interest debts).
Mortgage refinancing is, without a doubt, one of the best ways to borrow money because of the lower interest rates offered on mortgages. If you would like to explore your options and determine whether or not a refinance makes sense for you, give us a call.
We are always happy to discuss your options and may be able to suggest some additional cost-saving strategies as well.