Refinancing your current home
Are you interested in refinancing your current home to access funds for debt repayment, to lower your current mortgage payment, or to access funds for investment? We would love to help you with this and have also included information with the general lender requirements below. As always please feel free to connect with us via phone, contact form, or apply online and we would be happy to discuss your options with you and create a custom refinance solution that works for you.
The amount of funds you are able to access:
*The government of Canada limits Canadian banks and trust companies to a maximum equity withdraw of 80% of your home value. For example if you have a home valued at $400 000 and $200 000 currently owing on your existing mortgage we are able to access 80% of the $400 000 value. This would result in a total maximum amount accessed of $400 000 x 80% = $320 000 minus your amount owing of $200 000 which then results in a net amount of funds accessed for you of $120 000.
There are three traditional methods to accessing funds:
*Approve a new mortgage for you – This allows you to customize your mortgage, rates, amortization, and terms to ensure the best fit for you.
*Increase and blend your existing mortgage – This maintains your current mortgage rate and amortization and then blends your new mortgage funds with the existing rate and amount to achieve a blended mortgage rate. This option also typically saves you the pay out penalty costs but can result in a more restrictive and higher rate due to keeping your existing mortgage.
*Secured line of credit – This operates similar to a mortgage except it is re-advanceable so you are able to draw on it in the future as needed and you only pay for the funds owing. For more information please click on our “Home equity line of credit section”
*Appraisal costs – Many lenders will ask for an appraisal to confirm the value of your existing home, for our clients depending upon your mortgage amount we are often able to look after this cost for you.
*Legal registration costs – As you are registering an increased mortgage amount at land titles new legal registration is often required. The cost for this is typically about $690, depending upon the mortgage you select we are often able to look after this cost for you.
*Pay out penalties – This cost might be charged by your existing mortgage lender if you are breaking your mortgage term, we will include this amount within our assessment of your mortgage to ensure a refinance is still a good fit for you. This cost can often be paid from the funds that you access with your refinance.
We want to ensure your mortgage refinancing is beneficial for you, clear, enjoyable, and excellent. Please feel free to phone us, complete the contact form, or apply online and we would be happy to help you.