Could paying off an existing mortgage and replacing it with a new one, referred to as "refinancing," be the right option for you?
There are a number of reasons to look into refinancing, including:
Lower your monthly mortgage payment to improve cash flow,
Secure a lower interest rate,
Consolidate high-cost consumer debt, such as credit cards, car loans or other personal loans,
Complete home renovations,
Set up a home equity line of credit (HELOC) to withdraw funds when needed,
To purchase investments or maximize your RRSP contributions.
REASONS TO REFINANCE YOUR MORTGAGE
IS IT TIME TO LOOK AT YOUR MORTGAGE?
There are many reasons why it would make sense to refinance your mortgage. It’s important to note that we may have to requalify you to do so. We’ll discuss your current mortgage and if it makes sense to break it and if there will be any penalties.
RENEWING YOUR MORTGAGE
Another option at the end of your mortgage term is to renew. This is a great opportunity to assess your financial situation to see how your current mortgage fits in with achieving your financial goals.
I’ll be in touch with you about four months before your renewal to chat about the following questions:
Does your monthly budget have room for you to increase your mortgage payment amount?
Do you think you will want to borrow more money from your lender during this next term? If so, you’ll want to consider the prepayment penalties involved in a refinance.
Is there any chance you’ll be selling your home and/or moving in the next five years?
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