Here are just a few of the many refinance-related perks you may be able to look forward to.
1. Pay Your Mortgage Off Sooner
Refinancing can help you shave years off your mortgage loan by reducing your amortization period. Here, you may have the opportunity to shorten your repayment timeline by five, 10, even 20 years. While this will raise your regular mortgage payment amount, you’ll pay less interest and find yourself mortgage-free much faster.
2. Save Thousands in Interest
With Canada’s interest rates dropping, now is a great time to consider refinancing. Not only will this allow you to lower your current rate (saving you potentially thousands of dollars over the lifetime of your loan), but you’ll also be able to build equity faster and decrease your monthly payments. You may also be able to take advantage of additional savings by switching from a fixed-rate to adjustable mortgage (or vice versa).
3. Consolidate Your Debts
Depending on how much equity you currently have in your home, refinancing will allow you to consolidate your high-interest debts (credit cards, lines of credit, car loans, etc.) into one manageable monthly payment. By rolling your payments into a predictable, low-rate mortgage loan, you can look forward to lower monthly payments, lower debt interest rates and an improved credit score.
4. Reduce Monthly Payments
In addition to lower interest rates and debt payments, refinancing can also reduce your monthly mortgage commitment. Just as you can increase your payments to shorten your loan term, you can reduce your payments by extending it. While this will cost you more in interest in the long run, it may be a great option if you’re concerned about your monthly financial obligations.
5. Cash In On Your Own Investment
Whether you want to remodel your home, invest in real estate, start a business or pay for your child’s education, refinancing will allow you to make use of your hard-earned equity (up to 80%) in any way you see fit. Additionally, a mortgage loan will reduce your debt obligations to a single payment and will likely offer a more affordable interest rate (than that provided by a personal loan).
Are you thinking of refinancing or renewing your mortgage? Start the process today by filling out our Free Application! Or, for more information on the Services we provide, get in touch with us! We’ll be happy to tell you more.
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