Mortgage Refinancing

How you can use your home loan to achieve your financial goals.

Mortgage Refinancing

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Leverage the equity in your home

Mortgage refinancing is renegotiating your existing mortgage loan and replacing it with a new one. Homeowners will often refinance to obtain a lower interest rate, shorten the term of their mortgage, reduce interest payments, consolidate debt, finance a large purchase or to raise funds to cover a financial emergency.

When you refinance your mortgage you get new terms on your existing home loan. Oftentimes, the savings earned from a new interest rate outweigh the prepayment costs associated with refinancing. In fact, many lenders say 1% savings is enough of an incentive to refinance.

When done strategically, mortgage refinancing can be a great financial tool to reduce your mortgage payment, shorten the term of your loan, help build equity quickly or combat high-interest debt.

Is refinancing right for you?

Based on your individual needs we can evaluate whether refinancing makes sense for you and how best to do it. The most common reasons why you would refinance are for:

Debt consolidation

Merge higher interest debts into one manageable payment with a lower interest rate.

Secure a lower interest rate

When interest rates drop, consider refinancing to shorten the term of your mortgage and pay significantly less in interest payments going forward.

Cover emergency expenses

Take out some of the equity accumulated in your home to cover emergency expenses such as unexpected job loss, family illness or other financial emergencies.

Home renovations

Get the money you need to renovate or make repairs on your property.

Tuition

Cover education costs for yourself or someone else.

Investing

Use funds from your house to take advantage of an investment opportunity.

Frequently asked questions

What is mortgage refinancing?
Mortgage refinancing refers to the replacement of an existing mortgage with a new mortgage. You can use a refinance mortgage to obtain a higher mortgage amount, a different term, a lower mortgage rate, or to change borrowers on the mortgage.
What’s the difference between mortgage renewal and mortgage refinancing?
Mortgage refinancing can be done at any time during your mortgage, whereas a mortgage renewal is when your mortgage term is up for maturity and you need to pick a new mortgage.

Mortgage refinancing allows you to change the term, interest rate, and amount of your existing mortgage. People often refinance to take advantage of a lower interest rate or to take out more cash. A mortgage refinance usually involves a new mortgage application.

A mortgage renewal means you’re selecting a new mortgage. You can reset your interest rate, term, and amount. There is no penalty or cost at the time of renewal. If you are sticking to your existing lender, you do not need any credit application to renew your mortgage.
What are the benefits of mortgage refinancing?
1. Access cash using your home equity
Access up to 80% of your home value. You can use the funds to renovate your home, invest in another property, pay for education, take a vacation or support your business.

2. Lower interest rates
Refinancing into a lower interest rate can reduce the cost of borrowing. We negotiate with over 30 lenders to get the lowest refinance rates.

3. Consolidate debt
Consolidate high interest debts into your refinance mortgage to help lower your monthly payments, pay off debts sooner and improve your credit score.

Mortgages usually have lower rates compared to other credit products, such as personal lines of credit, credit cards, or commercial loans so refinancing your mortgage can be a great way to fund many of your life goals.
When should I refinance my mortgage?
You can refinance at any time. However, before you think about refinancing, you need to ensure you’re the right candidate. If you have less than a year to pay off your mortgage, you shouldn’t. If you’re not offered more favourable terms then opt-out.

Many people choose to refinance at the time of renewal. If you refinance before your current term matures, you may be charged a prepayment penalty. However, if the interest rate saving is greater than the penalty, it may still be worth refinancing even if your mortgage is not up for renewal yet.
How much can you refinance?
How much you can qualify for largely depends on your income and the value of your house, which determines your Loan-to-value (LTV). Estimate how much you can refinance by using our Refinance Calculator. Deciding if mortgage refinancing is right for you can get complicated. We are always happy to help by evaluating your situation and guiding you through the refinancing process.
What are the mortgage refinancing rates?
Refinance interest rates are similar to most conventional mortgage interest rates except that they are usually higher than default insurance mortgage rates. You can get the lowest mortgage refinance rates in under 2 minutes by talking with one of our experienced mortgage advisors. Click Get Started to begin your application or contact us directly.
How much does it cost to refinance?
The main costs for refinancing your mortgage include prepayment penalty/breakage, legal fees, title cost, and appraisal cost. You only need to pay a prepayment penalty if you refinance before your mortgage is up for renewal.

Your refinance may not require a lawyer depending on the complexity of the refinance. Legal costs are typically in the range of $1,000-$2,000. If you do not require a lawyer, there will likely be a “title cost”, which is to change or increase the “lien” the bank has registered on your property.

Second, refinancing requires an updated appraisal report on your property to ensure the value of your home is up-to-date. This is used for the lender to assess your Loan-to-Value. The appraisal report usually costs between $300 to $400 dollars.
Does refinancing impact your credit?
Usually refinancing doesn’t impact your credit. However, if you shop your mortgage rate with too many lenders, your credit file will get “multiple inquiries/hits” from different lenders, which will negatively impact your credit score. That’s why it’s beneficial to use an experienced mortgage broker, who will only check your credit once and then negotiate the best rate with multiple lenders on your behalf. Talk to one of our experienced mortgage advisors today for any questions you may have.

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