Mortgage Refinancing Can Reduce Your Monthly Payments – Here’s How

November 9, 2019 By: excelagents0 comments

Refinancing your mortgage can be one of the best decisions you ever make. Whether your current payment is unaffordable or you just like the idea of saving money, we can help you with a mortgage refinance in Canada.

Reasons to Refinance Your Mortgage

There are many reasons to consider a mortgage refinance in Ontario:

Get a lower interest rate

Who wants to pay more interest than necessary? Knock your rate down, which automatically lowers your monthly payment.

Consolidate debt

Are you paying high interest rates on your consumer debt? Access the equity in your home and wrap your debt into your mortgage.

Get cash from your home’s equity

With a mortgage refinance in Canada, refinance your first mortgage taking out up to 80% of the home’s current value or leave your current loan and take out a home equity line of credit.

Use the steps below to refinance your mortgage:

• Consult with your current lender
• Get quotes from at least three other lenders
• Maximize your credit score
• Find a cosigner if necessary
• Evaluate your options including FHA, VA, and conventional loan programs

Should I Refinance my Mortgage and When is the Right Time?

A mortgage refinance in Ontario makes sense when you can:

• Save at least 1% – 2% on your interest rate
• You can consolidate consumer debt and save money every month
• You have more than 20% equity in your home and you need the cash for large purchases or investments

Timing your mortgage refinance is crucial. As you wait for interest rates to drop enough to make refinancing worth it, work on improving your credit score. Lenders give the best interest rates to borrowers with the best credit scores and lowest debt ratios. You can improve your credit score by:

• Bringing all accounts current
• Paying revolving debt down or off entirely
• Not applying for any new credit
• Leaving old accounts open, even if unused

Can I Refinance With Bad Credit?

Bad credit shouldn’t stop you from refinancing. This is when it’s important to shop around as much as possible. While you may not qualify for FHA or conventional loans, many lenders have their own loan programs, making a mortgage refinance with bad credit possible.

These in-house loan programs have flexible guidelines that make it possible for even those with bad credit to take advantage of a mortgage refinance in Ontario.

What is the Cost to Refinance in Canada?

Each lender has its own charges for a mortgage refinance. As you break your mortgage contract, you’ll have legal fees and potential lender fees. Shop around for the lender that offers the best terms and fees for your mortgage needs. Some lenders may cover the costs for you, depending on the size of your loan.

Can I Refinance Rental Property in Canada?

Refinancing rental property in Canada is possible. You may have to shop around for a lender, though. Some lenders don’t refinance rental properties and others have stricter requirements. This is when it’s crucial to maximize your credit and debt ratio to get the best terms available.

Are you ready for a mortgage refinance in Canada? We can approve you with:

• Bad credit
• Full-time employment income and unemployment/reduced income
• Mortgage arrears and/or property tax arrears
• Power of sale matters
• Self-employment
• Pension and/or disability income

Call us today and let us help you get started!

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