Karen Matthey

Refinancing Your Mortgage

refinance mortgage kingston

What Does Refinancing Your Mortgage Mean?

Refinancing is typically where you are adding to your mortgage balance, either at maturity of your existing term, or breaking your current term to renegotiate the rate and mortgage amount.

If you have more than $10,000 of unsecured debt (credit card or line of credit), it may make sense to add this into your mortgage and get a lower rate to pay it off faster (and more cheaply!)

Refinancing is the absolute gold standard when it comes to borrowing money at the lowest interest rate possible. This is because secured financing offers the most competitive interest rates, which allow borrowers to maximize on substantial savings. This can come in handy if borrowers have high credit card balances or other loans that reduce necessary monthly cash flow because of high interest payments. There are many more reasons a borrower may choose to refinance their existing mortgage but it always depends on the final cost analysis and whether the savings and benefits make sense.

Your Mortgage Expert

Reasons to refinance your current mortgage

Whether you want to complete a home renovation, consolidate debt, take out an equity line of credit, access equity in your home, send a child to university or purchase an investment property, refinancing your existing mortgage can offer you a valuable solution.

Refinancing often makes sense especially if you would have otherwise obtained credit or a loan somewhere else at a higher interest rate.

Because unsecured loans are not secured against collateral like real estate, they are often higher interest than secured ones. Therefore, your home can be used as a tool you can capitalize on by paying substantially lower costs on the funds you need.

Common Mortgage Refinancing Questions

In order to refinance your mortgage, you will have to break the term of your original mortgage. This may trigger a prepayment penalty. If your existing mortgage is a variable rate mortgage, the penalty should only be three months of interest. A fixed rate mortgage may cost either three month’s of interest or the Interest Rate Differential (IRD). We can help you figure out what the total costs will be to break your mortgage early and if the overall savings justify the refinance.
In order to refinance your mortgage, you will require the services of a lawyer. A lawyer must discharge the existing mortgage and register the new mortgage in favour of your new mortgage lender. Legal fees vary from firm to firm so it’s important to check around and compare prices. Usually, legal fees are between $750 to $1,500. We do have access to subsidized lower cost lawyers which you can use.
You can refinance your home to up to 80 percent of your home’s value, which may need to be be confirmed by an appraisal.

I look forward to helping you with your mortgage financing.