Refinancing your mortgage is never an easy decision, but for many, it’s an important step towards regaining financial order. You typically have several options when refinancing such as:

  • Getting out of your current mortgage contract early
  • Adding a home equity line of credit
  • Pay off high interest debt
  • Blend & extend your mortgage with your current lender.

Our professionals always work in tandem with our clients, and we typically ask ourselves the following questions:

How is the market performing?

Many first-time buyers often purchase a mortgage without fully understanding the terms and conditions. As a result, many buyers are paying astronomic monthly payments that exceed 30% of their monthly income, creating a cycle of debt. We often look at how the housing market is performing as well as looking at the key lending rate set by the Bank of Canada. If the market is booming and interest rates are generally lower, it’s a great opportunity to refinance your mortgage.

What types of loans are available?

If the market is favourable, we always take the time to research the different mortgages available. Once again, we’re mainly talking about fixed-rate and variable mortgages, and the term measured in years. This part of the puzzle is really about sitting down and going over your finances to determine what you can afford in terms of a monthly payment.

Consider the fees

Refinancing is not a quick escape out of paying your monthly payment. In fact, the process involves a lot of paperwork and verification from the lender. Most clients think the entire process is quick and relatively cheap, but in reality it involves a lot of fees that can cost thousands of dollars. It’s not designed to be an easy fix but can provide relief for those who are struggling.