Refinance

A homebuyer will refinance their mortgage when they need to make a change to the term, rate, or amount of their mortgage. There are three main reasons to refinance your mortgage:

1) To access your home's equity:

• The equity in your home is equivalent to your home's value less the remaining mortgage balance.
• Homeowners can access up to 80% of the equity in their home.
• Homeowners will access equity to complete home renovations, for investment or for major purchases.

2) To consolidate debt:

• It's a reality in today's world that people will take on debt to finance a variety of purchases and expenses.
• Debt can come in the form of credit cards, lines of credit and loans, which can all come at high interest rates.
• Since mortgages are secured against your home, they offer a lower interest rate that is more attractive than other forms of debt.
• Homeowners will consolidate debt into their mortgage to lower their total monthly debt payments.
  
  

3) To lower your interest rate:

• Interest rates can change on a daily basis. If current interest rates are quite a bit lower than the rate on your mortgage, it may make sense to refinance to obtain a lower interest rate.
• In this scenario, we would have to evaluate the interest savings associated with obtaining a lower rate versus the cost to break the term of your existing mortgage.