There are many reasons to refinance your home. You may want to take advantage of low interest rates, to get access to the equity in your home or to consolidate debt. Let’s examine a few of these more in-depth.
Refinancing a Mortgage in Canada
Mortgage Management – Refinance with no new money
Making any change to your current mortgage will depend on several factors. It may be because current interest rates are lower or because of a new mortgage product that was introduced that you could benefit from. I can help you review your mortgage to see if it makes sense.
Financing the Purchase of an Investment Property
If you have home equity and are interested in further real estate investing, you could take equity out of your current property by refinancing the mortgage and using the increase as the down payment for the purchase of an investment property. This may also allow for additional interest deductibility that could be missed by using current savings instead.
Financing Education
Due to the increasing cost of tuition, many have not saved enough so taking equity of their homes may be the cheapest way to pay for the difference.
Financing a Renovation
If you are doing major renovation, it could be more effective to use the equity in your home as opposed to a loan or line of credit. Your interest costs will be lower and it can be amortized over a longer period of time which means it won’t hurt your monthly cash flow as much.
Debt Consolidation
If your monthly bills have gotten out of control, you might be able to refinance your home and pay them off. The advantage of doing this is to lower your total monthly payments. Have a mortgage advisor review your situation and make a recommendation.
