Updated: Feb 11
Not sure if you should refinance your mortgage? Maybe, you are wondering about the process and how it works?
I will answer some common questions regarding mortgage refinancing here but of course each client has individual needs and the best way to determine if a mortgage refinance is a good option for you is to get in touch with me and we can talk it over. What is Mortgage Refinancing? Mortgage refinancing is when you payout your current mortgage balance with a new mortgage and increase the amount you are borrowing. It is a very common practice in Canada. Why Would I Refinance My Mortgage? Well, this answer is different for every person. Debt Consolidation Many people will refinance their mortgage to consolidate debts and achieve better cash flow. For example: If you are struggling with your monthly payments such as credit cards, car payments, lines of credits, loans, you can consolidate them into your mortgage you will have one easy monthly payment. Since your mortgage amortization is typically much longer than a traditional loan your monthly payment will be less and much more affordable. Mortgage Equity Take Outs Another reason why people refinance is to access the equity in their home or better known as an equity take out. You can pull out equity in your home for investment purposes such as getting a down payment for a second home or rental property. It is also common for clients to refinance for renovation purposes, such as remodeling your kitchen. To Save on Interest If your mortgage interest rate is higher than the current mortgage rates you can also refinance to get a lower rate. This is also the case if you have high interest loans, by consolidating them with your mortgage you can save on interest as well. What is Needed to Refinance? You need to apply for a new mortgage amount by providing your personal information such as name, address, income etc. We will also need to pull your credit bureau. I make the mortgage application process as simple as possible for you and am there to help you every step of the way. All and all it usually is just a bit of paperwork, sometimes an appraisal is needed, and providing the lender with the required documents for the loan approval such as employment letters, pay stubs etc. Can I qualify for a mortgage refinance with bad credit? The simple answer to that is, yes! I have access to many lenders that will look past bad credit assuming the rest of the application suits their needs. Still have questions about mortgage refinancing? Want to see if you qualify? I have access to many great lenders and specialize in assisting clients with the mortgage refinances! Contact me today by calling 519-820-2734 or by e-mailing email@example.com Tess Velkovska Mortgage Agent Verico Excel Mortgage Canada Connection