Today, Canadians face many reasons to refinance their mortgage.
The cheapest financing you can obtain are the funds you receive when you refinance your home. Make sure to use these funds as it will save you thousands of dollars compared to using other unsecured methods of financing.
Refinancing is a great option to pull out equity from your home when you need to:
- Consolidate debt
- Home improvements
- College expenses, and more
There are 3 refinancing options
Blend and Extend or Blend to Term- Your existing Mortgage Lender may offer you a ‘blended rate’, essentially, a ‘blend’ of your current mortgage rate plus any additional money you borrow at current market rates.
Home Equity Line of Credit- A Home Equity Line of Credit gives you access to the equity in your home at your own discretion. You are responsible for interest only payments each month on the outstanding balance. You can access a Home Equity Line of Credit through your existing lender or other lenders.
Break your existing mortgage contract early- You would consider breaking your mortgage early if you wanted to obtain a lower interest rate or access equity from your home. In this case you eliminate your existing mortgage and take on a brand new one with any lender. The downside will be that you are paying the penalty for breaking the mortgage.
You want to make sure you are choosing the best option for your specific situation. The difference could result in thousands of dollars being lost or saved. Request that I contact you, for a free, no obligation consultation on your refinancing options.