If you own a property and need to access money from the property this is called refinancing (often confused with renewing). This often means replacing an old loan with a new one and can be with your current lender or a new one.
Why would you refinance?
Accessing the equity in your home to pay for renovations, travel or to purchase an investment property.
To save money. Canadians often miss the opportunity to replace their mortgage with a lower interest rate. This could save you thousands of dollars every year!
To pay off higher interest debts. If you have credit card, line of credit or a car loan it may be beneficial to pay off the debts with a mortgage. Imagine paying off all of your debts with a loan under 3%!
To create financial stability. You can setup access to the equity in your home as a safety net. This can provide peace of mind knowing that low interest funds are available as a contingency.
Does it make sense to refinance?
Before suggesting a client should refinance, we evaluate the cost and savings to determine the overall benefit. Even if you can secure a better rate the penalties may exceed the savings.
If you are not sure about refinancing contact us today and we will provide you with an easy to understand analysis to determine your savings.
Keaton and Scott