Refinance Mortgage Toronto ON
Toronto Mortgage Broker with 10+ years of experience
Accessing the equity in a property for a variety of purposes.
There are a multitude of reasons a person might decide to refinance their mortgage. When you refinance your mortgage, what you’re essentially doing is paying out the existing mortgage and starting a new one. There are many occasions in which it makes sense for a person refinance their mortgage, but here are the most common:
- Access the equity in your home:
- Perhaps you’ve owned your home for several years and think it’s about time for a few upgrades. If you don’t have the cash to do your own renovations or updates, you may want to tap into that equity to get the work done.
- Other reasons you might wish to access your equity include: financing another purchase, helping your child with the costs of post-secondary education, to finance a wedding etc.
- Consolidate debt:
- Many people have unsecured loans and credit card debt in which they are paying extremely high interest rates. If you have enough equity in your property, you can leverage it to pay off your unsecured debt thereby consolidating it into your mortgage.
- To take advantage of better interest rates:
- As interest rates are subject to fluctuations, in not uncommon that a person realizes that interest rates are significantly lower than they were when they initially obtained their mortgage. In some situations, it makes sense to pay an early payout penalty to break your current mortgage, if that means you’ll be obtaining a better interest rate and will ultimately save money because of this.
- You will also be afforded the option to re-amortize your mortgage in accordance with your current financial picture. For example, you can extend the amortization in order to reduce your monthly carrying costs, or if you’re trying to paydown your mortgage faster you can shorten the amortization period and save thousands of dollars over time.
