Refinancing Your Mortgage for 2020: The Most Important Things to Know

Refinancing your mortgage means breaking your old one and starting a new one either with the same lender or another lender. This allows you to get a lower interest rate, consolidate your debts, or access the home equity you’ve built up on your home. Although a mortgage refinance comes with prepayment fees and other risks, there is a lot of benefits that you can gain from it. The key is to make sure that the positives will outweigh the risks before you refinance your mortgage.

Benefits for Refinancing Your Mortgage for 2020

Almost nothing has changed when it comes to refinancing your mortgage prior to COVID-19. There may be some delays plus the way you submit necessary documents might be a little different but overall, a mortgage refinance now carries the same benefits as before, namely:

Enjoy Lower Interest Rates

If you got your primary mortgage back when interest rates were higher, you can refinance now to enjoy better interest rates that can help you save money over the years. You might have to pay a penalty of three months of interest or an IRD (interest rate differential penalty) but know that with a refinance, those fees will only be a small percentage of what you can save.

Help with Debt Consolidation

Depending on the terms of the refinance, you can have some extra cash that can help you pay off debts or enjoy a new loan that can help you consolidate debt. Most debts like credit card debts, personal loans, and car debts have a high interest rate. By consolidating them with a lower-interest financial option, you’ll save a considerable amount of money.

Access Your Home Equity as Cash

With a refinance, you can access as much as 80% of your home equity. You can use this cash for anything that you want such as paying for higher education, a dream vacation, a home renovation, or for an investment opportunity.

Why Consider A Mortgage Refinance?

A mortgage refinance has many pros and cons. It is a major financial decision which shouldn’t be taken lightly. If not properly planned, you can end up paying more for fees than what you anticipated. On the other hand, it can help you get out of debt faster because you will end up paying less for interest and more towards your actual amount owed. It can free up funds that can give you a high degree of financial freedom but if not used in a smart way, you can end up in more debt. It is best to consult mortgage professionals to avoid making rushed decisions that can negatively affect your finances.

How to Refinance Your Mortgage?

You can refinance your mortgage by breaking your mortgage contract early, blending and extending your mortgage with your lender, or by taking out a home equity line of credit. The process and advantages differ in each option as well as the processing costs. Contact us at Homebase Mortgages to find out which one might be the best option for your situation and we’ll assist you in getting approval for it.


Is It Beneficial to Refinance Your Mortgage for Debt Consolidation?

Debt consolidation is a popular way to avoid paying huge interest rates for existing debts. Through the process of debt consolidation, multiple debts are converted into just one easy-to-manage debt with just one billing instead of having to keep track of multiple bills a month. It works by borrowing enough money to pay off smaller debts to ‘convert’ them all into just one debt. One way to do so is to refinance your mortgage.

How to Get Rid of Debt in Canada

With recent developments in world events, more Canadians are weighed down by debts these days. Almost everyone has credit card debts, personal loans, car loans, student loans, and other types of loans. It is easy to get buried in debt just by forgetting to pay one bill every now and then. Some people are so overwhelmed by multiple bills that all they can do is to pay off the minimum or just the interest in an effort to stay on top of their bills. By doing that, they keep paying without making a dent in the actual amount owed because all their payments pretty much go to covering just the huge interests. One delayed or missed payment can cause the debt to balloon even larger because trying to handle multiple small but high-interest loans is tricky and comes with a lot of pitfalls. With all these things to consider, it is easy to see why debt consolidation is the smart way to go.

Consolidate Debt the Smart Way

Note that not all ways to consolidate debt can make things easier for you. Some still come with high interest. To save the most in interest, it is best to pick a secured loan such as a HELOC or a home equity loan if you’re not interested in refinancing your mortgage.

What makes debt consolidation attractive is it usually helps save money, time, and effort. When multiple high-interest loans are combined into a single lower-interest loans by paying all the existing past balances with the money from the new loan, you will be closing all old debts by combining them into one. When properly executed, a debt consolidation plan can ensure that the debt is paid months to years in advance as compared to the original loans.

Should You Refinance Your Mortgage for Debt Consolidation?

Refinancing your mortgage for debt consolidation is a smart way to plan a lower interest and more manageable debt. Although most mortgages charge around 5% interest, most credit cards charge 15-30% interest per month, so imagine the savings over time. You will be able to save possibly thousands of dollars just in interest but forget though that refinancing your mortgage will come with fees. Closing costs typically are charged 1-5% of the total loan and that can hurt some pockets but if choosing between this and paying 10-20% interest or more per month, it is easy to make a choice.

Is it beneficial to refinance mortgage for debt consolidation? No doubt, yes! If you have more questions or want a detailed explanation as to how some things may apply for your specific situation, then contact us at Homebase Mortgages Canada.

Is It a Smart Decision to Refinance Your Mortgage?

Refinancing your mortgage is not an easy decision to make no matter how many people around you have done the same and things turned out fine. The decision is a personal one and best made when you’re fully informed of the things you need to know when refinancing your mortgage.

What is Mortgage Refinancing?

Mortgage refinancing is when a homeowner gets a new loan on a home complete with new terms. It is usually done to get better terms or to change the length of the loan although some homeowners opt for it to free up some cash by accessing some of the home equity. Some homeowners refinance their mortgage to a shorter-term loan to build home equity faster or to save up money that could have gone to paying for interest. Others refinance their mortgage to a longer-term loan with lower monthly payments so they can allocate some of their monthly budget for other expenses.

When Is it Smart to Refinance Your Mortgage?

Refinancing your mortgage is a huge decision that can have a huge impact on your finances over the long-term. You need to consider what you can afford to pay per month as well as applicable interest rates to make sure that you’ll come to a decision that will serve your best interest. It will be best to talk to a mortgage professional to be fully informed of the pros and cons of mortgage refinancing as well as other financial solutions that can work for your needs.

One of the main factors to consider is whether the cost of mortgage of refinancing will be worth it for you. There are upfront fees that will have to be paid and you need to be sure that you can recoup the cost of the fees. You’ll also have to consider timing. Interest rates in Canada are bound to increase soon so while you won’t want to make a hasty decision, it is better to make up your mind as soon as possible as well. If you have a better credit score now than when you first got your mortgage, you’ll be able to get a better interest rate too.

When Is It Not Smart to Refinance Your Mortgage?

Having low equity is not a good time to have a mortgage refinance. The same goes for when you’re in a bad financial situation or when your credit score has gotten worse. If you’re planning to move soon or will have a major change in your career, it will be better to wait for better timing. Lastly, it will be best to ask a mortgage professional for computations to have an idea whether potential benefits will outweigh the cost and effort of refinancing your mortgage. A good mortgage professional will also be able to negotiate better terms for you should you decide to refinance your mortgage.

Looking for mortgage refinancing help? Contact us today so we can answer your mortgage refinancing questions as soon as possible!

3 Smart Reasons to Refinance Your Mortgage

Now is the best time so far to take advantage of the equity you’ve built in your home. How so? Because mortgage rates have been low and steady in recent years, that’s why!

Today’s market presents you with good rates with no indication of sudden change. If you don’t think these days is a great time to refinance your mortgage, below are 3 smart reasons why you should consider it.

You Want to Make Use of Your Equity

Because our housing market has been steadily making a comeback over the last few years, it is a given that home values are also at an upward trend. This means that the equity you are gaining on your home is also climbing at a faster and more favourable rate.

The above situation places you at a particular advantage if you decide to take cash out of your home’s equity. More equity means you can borrow more against the equity you’ve built up, which means financial flexibility for you.

You can use your home’s equity to finance a home remodeling or home renovation. This smart move will pay back in the future because renovations have a huge potential for further increasing your home’s value. You can also use your home’s equity to catch up on loans by using it to consolidate debt or perhaps use it to finance a business or your child’s college education.

You Want to Shorten Your Term

Refinancing is the way to go if you want to shorten your existing term. This would of course, mean higher monthly payments from you as opposed to a longer term such as 20 years or 30 years. The good news is, opting for a shorter term will usually mean a lower interest rate which means savings in the long run.

Note that investors and lenders like it when you are willing to go for a shorter term loan because it means that they can get back their money sooner. If you have the means to afford high monthly payments, going for a shorter term is really a smart thing to do.

You Want to Lower Your Payment

Refinancing can lower your payment a couple of ways. If you opt to refinance to a longer term, you will end up with lower monthly payments that is within your means. If you refinance to shorten your term, then the lower interest rate will lower your total payment once everything has been paid.

Things aren’t as simple as described above though. There are technicalities which you have to be wary of and details that are best handled by professionals who have your best interest at heart. Some lenders may include pitfalls in their contracts and you have to know how to avoid those.

Are you thinking of refinancing your mortgage to tap on your home’s equity, lower your payment, or perhaps save on interest? Let us help you at Homebase Mortgages. Our professional loan experts would be more than happy to answer your questions and assist you towards better financial management. Contact us today for answers!


Save Money with Mortgage Refinancing

Canadian Mortgage BrokersIf you’ve had a mortgage for some time but you’re tired of paying high interest every month, it’s time to think about mortgage refinancing. Almost every kind of mortgage can be refinanced, but you’re not going to want to do it on your own. You wouldn’t buy insurance without a broker, and the same goes for mortgages. Here we’re going to discuss everything mortgage refinancing so you can make the right choice for you. It’s not right for everyone so keep reading to find out more.

What is Mortgage Refinancing?

If you have any kind of existing mortgage you’re paying off, you can refinance it. Maybe when you got your first mortgage your credit wasn’t the best, or maybe the interest rate, terms and monthly payment you received were just a bit too high. With Canadian interest rates at the lowest they’ve ever been (and probably will be) for several decades, now is the time to refinance. You can take that double digit interest loan and cut it in half. This way you bring down the amount of money you’re paying each month to interest and how much you have to pay every month period.

Is There a Catch?

With mortgages there are always catches, and that goes the same with mortgage refinancing. Depending on how your refinance is structured you may end up paying a lot more than you want to in payments. The first rule you should always follow is “Am I paying more or less now?” People restructure their mortgages to save money, not spend more. If the new deal will end up costing you more money in the long run, if the interest is higher or the terms not as fair as the one you have right now, keep looking for another mortgage lender with your Toronto mortgage broker.

Will Mortgage Refinancing Work for Multiple Mortgages?

If you have multiple mortgages you may be able to consolidate them together when you refinance your debt. This will give you a single payment each month, a single interest rate to worry about. This can be a lot easier than trying to keep track of all of your bills every month but when you consolidate you may add an extra year or two to the life of your loan. In the end many borrowers find this a better bargain; make sure you speak with a Toronto mortgage broker before you make your choice.

How do You Refinance Your Canadian Mortgage?

Refinancing a Canadian mortgage is as easy as finding a mortgage broker to work with. The last thing you want to do is to deal directly with the lender on your own. The only incentive that a lender has to give you a better rate is competition. They’ll always give their best rates to a mortgage broker who knows how to negotiate. Choose your broker wisely and you’ll be able to reap the benefits. Don’t deal directly with your lender unless they’re willing to offer 0% interest!

5 Ways to Turn Your Bad Credit Around with Refinancing

No one finds bad credit attractive. It is even much worse when you need to borrow from credit facilities because it shows all the skeletons in your borrowing history. Times when you’ve defaulted in your payments for one reason or another such as failing to pay on time can gravely affect a lender’s decision to give you mortgage. A pending loan that got out of hand and bad credit from previous borrowing will magnify the problem even more. If you’re aware of all this, then there’s hope in the horizon!

What to do then? How can you boost your credit score? Proactively trying to keep your financial health in good condition can prevent you from achieving worse credit in the future, but how?

Applying for a refinancing to get a new loan with better terms and payment plan can save you a lot of money. New mortgage terms can help you pay back your debt and therefore boost your credit score. Sounds like a plan? You bet!

So how can you get a new loan when you have a bad credit history? Here are tips to help you get refinancing at much better interest rates:

Tidy Up Your Paperwork

Wrong information can break your credit score. Check your credit documents and see if the information contained therein is valid. Rectifying errors can make you more eligible for refinancing at lower interest rates.

Make it Personal

You need to make your lender understand why you have a bad credit situation and the best way to do that is to meet your lender in person. By helping your lender understand your situation, you’re letting them see what you’re doing to pay back and that you care.

Know Your Ability to Pay

Things change, and what you can afford to pay a few months ago may be totally out of what you can afford now. The good news is that you can change your loan terms to help make payments easier for you. How can you do that? By refinancing! But remember that you have to be able to convince your lenders that you have the ability to pay your new terms. One thing you can do to convince them is to show proof of your ability to pay by depositing some money in the bank or by showing proof of your expected revenue. This often leads to favourable payment terms with lower interest rates so be sure that you can hold your end of the bargain!

Have Strong Guarantors

Pick your guarantors right. The people guaranteeing your loan should have a better credit rating and score than you because this shows lenders that your guarantors believe that you have the ability to pay your mortgage. After all, being a guarantor means they’re willing to pay your loan should you default on payment. Establishing that you have a low risk of defaulting will make your lender more willing to refinance your mortgage at more favourable rates.

Shop for a Better Lender with a Strict Loan Policy

Your main goal should be to get a better credit rating/credit score and to get out of debt, so don’t be tempted to go for loans with tempting terms such as those that allow you to withdraw extra payments. Facilities that tempt you to spend more are no better than parents who spoil their children and will do you more harm than good in the long run.

A better mortgage package means that you don’t have to borrow again, because hopefully, you’ll be able to have a better hold of your financial health. A great mortgage broker can guide you to the best lenders who can offer you the best rates and terms.

Looking for a mortgage consultant in Ontario to help you apply the tips above? Allow us help you with our 60 years of industry expertise fixing bad credit and helping people like you with their mortgage. Contact Homebase Mortgages today!


Who Should Refinance Your Mortgage?

mortgage refinancingWhen it comes to mortgage refinance, it can be hard to figure out just WHO should handle it. We’re not just talking about finding the right lender either – the right Toronto mortgage broker (us!) can make a world of difference between a refinance that works and one that doesn’t. You need to know that the institution you’re working with is giving you the best deal. You need to know that your broker is working closely with you to help you achieve your financial goals… but where do you start? Here we’ll go over everything you need to know to make the best choice for your unique financial needs, so let’s get started!

What Do You Need?

You need to sit down and ask yourself the following question:

“Do I really need to refinance?”

Answer honestly – do you need to refinance your home because you’re on the verge of losing it all or things are spinning out of control, or do you just want to save a little bit on your monthly payment?

Mortgage refinancing should always be a last resort, a nuclear option for your finances. Your savings will need to be 2-3x as much as what you’re paying in closing fees (you’ll pay fees just like you did when you first got your mortgage). 

Can You Qualify?

The next thing you need to find out is if you actually qualify for mortgage refinancing. Not everyone does – it’s important to understand where you’re at with your credit and your equity situation before you proceed.

Not sure where you fall? That’s okay! You can call us any time and one of our Canada mortgage brokers will help you explore your options for refinance.

Check in with the Big Banks

Once you know you’re a good candidate and you’re doing it for the right reasons, it’s time to get serious. Working with us we’ll help you look over different lenders and see what they’re offering you.

Sometimes you’ll be able to get a great refinancing option with your current lender – our aim is to make sure that regardless of the lender you choose, you’re getting the best deal. If your current lender can’t match another bank’s offer, we’ll let you know.

Private Lenders or “Direct Mortgages”

Sometimes you just can’t find a big bank that’s willing to give you a great deal on refinancing – this is when it’s time to start exploring private mortgage options too. Private mortgages come from small lending companies that lend money out for a profit over a long period of time.

Private mortgages can be risky if you don’t know which ones to deal with – but we do! We’ve been working in the area as premier Toronto mortgage brokers for years now and we know which lenders are dependable and which ones you need to avoid.

Working with a Mortgage Broker

It’s important to work with someone you can trust to get a great deal on your next mortgage. We’ll be with you every step of the way to make sure you’re getting the deal that’s right for you. We work for you, not for the banks; we’re only paid after you find the right mortgage, not before. Call us today and see what we can do for you.

Mortgage Refinancing Helps You Pay Off Your Mortgage Faster

If you’ve taken on a mortgage that is draining you financially, it’s time for mortgage refinancing. Even if you have a “great” mortgage from your bank, it never hurts to refinance. If you are near the end of your mortgage you may not want to refinance; other than this you’re in the clear to see wht kind of new deal you can get with your financing. The important thing to know about mortgage refinancing (and any type of loan refinancing) is that you don’t have to go with the original lender to get it done. We’ll help pair you with a third party lender so you can get a great rate and put more money towards your mortgage each month.

What is Mortgage Refinancing?

When you have a mortgage (first or second, it doesn’t matter) you have a contract with a bank to repay. This could be an ARM (adjustable rate mortgage) or it could be a fixed rate. Each mortgage could always use some wiggle room when it comes to how much interest or monthly payments the borrower needs to make.

With mortgage refinancing you take your existing mortgage and refinance it. It may just be the interest rate that you have refinanced, or it may be the amount you have left due on your loan. It could even be the repayment terms (monthly payments, if there’s a prepayment penalty, etc.) themselves that are restructured. Each lender will have something different to offer, and this is where we come in.

How do Mortgage Brokers Help?

With the right Toronto mortgage broker, preferably us of course, you’ll be able to get the best rate on your loan. You’ll have to come down and fill out your paperwork like you would normally, and then we’ll shop your refinancing proposal to different lenders. From the conventional bank lender that may or may not give you a good rate, to private mortgage lenders who will be a little more flexible, you’ll be able to find the right lender for you.

Mortgage refinancing is serious and you’ll need to make sure that you’re getting the right deal. We’ll help you go over each offer so you can see how much you could save over your existing mortgage.

Is it Time to Refinance?

Like mentioned earlier, if you’re closing to paying off your mortgage now may not be the time to refinance. If you have years left on your repayment though, it’s a smart idea to at least consider refinancing. Don’t go straight to the bank to get refinanced when you can make different lenders compete. When you go to the lender who gave you your original mortgage they simply don’t have a reason to give you a better rate the second time around.

With interest rates at unheard of lows (around 5%), you’ll be able to refinance even the most difficult mortgage. Just because you have bad credit or are self-employed doesn’t mean you can’t refinance. Contact us today and see what we can do for you!

Know Your Options for Mortgage Refinancing

mortgage refinancingA lot of us hope that customer loyalty will pan out but sadly this just isn’t the case. A recent Bank of Canada study showed that Canadians who are faithful to the same lender usually get the short end of the stick. New customers reap the best deals, while old customers are considered established and are not the “rainmakers” that make the bottom line shine. A successful lender depends on a steady flow of new business; so if you want to make sure that you’re getting the deal that’s right for you, you’ll want to work with one of our Toronto mortgage brokers. Don’t pay more than you have to!

Always Find Out What Deals Your Lender Has

Right from the start you’ll need to make sure that you can’t get a good deal from your current lender. Lenders you’ve been working with for a while aren’t as likely to give you the best deal – after all they already have your business. Don’t be afraid to try negotiate with your current lender; you can try to get them to reign in your interest-rate, your monthly payments, and give you fairer terms this time around. Many will cave when you threaten take your business elsewhere, some just won’t. That’s what it’s time to start looking at your other options.

Do Your Research and See What’s out There

New lenders are more likely to give you a better deal, but you’ll want to watch out for introductory rates! The first thing you’ll want to do is find out what the prime interest rate is; from here you can add a few points to get an idea of what kind of interest rate you can expect to get. The better your credit score the better terms you’ll be able to get from a lender.

From there you’ll want to start looking at what lenders in your area are offering. Check out mortgage calculators and really figure out if you can save by mortgage refinancing. You have to know that there will be closing costs and the life of your mortgage will get extended – so it may not be the best deal for you if you just want to save a few bucks. You’re going to want to have a clear plan of action before you talk to a lender.

Is It Really the Right Choice for You?

Getting the right mortgage refinancing deal is a lot of work – but when you work with us as your Canada mortgage broker you’ll have help. We know the best lenders to work with, the ones to avoid, and how to structure the deal to make sure you’re really seeing savings you can use every day. There’s no point in refinancing your mortgage if you’re not going to end coming out on top, and that’s why we work hard to help you save money. If you’re drowning in debt and you’re ready to move on, give us a call! We’ll help you find the right deal today. 

Should you refinance your mortgage?

Sometimes what you have to pay towards your mortgage is more than you can bear, and that’s when mortgage refinancing comes in the play. Here were going to talk with how you can refinance your mortgage, but you know it’s time to refinance your mortgage, and other solutions you can try instead. Always remember: just because you’re paying a slightly higher interest rate now doesn’t mean you should refinance! Sometimes the savings just aren’t worth it, and there may be another way to bring your costs down.

What is mortgage refinancing?

When you have a mortgage that isn’t treating you right, what can you do? If you stop paying you’ll end up losing your home – but there’s always another option! With mortgage refinancing you’ll be able to get a better rate, bring down your monthly costs and if you play your cards right you may just be able to pay it off earlier than you thought you would. It’s important to make sure that you really need to do this before you start looking for a deal, so talk with one of our Toronto mortgage brokers today and see if this is the right choice for you.

Are there closing costs?

Yes, mortgage refinancing does have closing costs. You’re going to be paying just about the same as you did to get your mortgage originally, so it’s important to make sure that you’re going to see real, tangible savings. If you’re only going to save a percent off your monthly interest rate or end up seeing $20 a month off, it might not be worth it. Working with one of our Toronto mortgage brokers will help you understand the real savings you’ll see and if this is the best course of action for you.

Doesn’t this lengthen the life of your mortgage?

Mortgage refinancing will extend the life of your mortgage – but also the life of your payments. If you only have 18 months of less to pay off your mortgage, you may just want to tough it out. Refinancing your mortgage needs to be a last resort, not a first one.

If you have more than 18 months left or you’re in danger of going underwater on your mortgage, or you’re just having trouble keeping up with your payments, this may be the right choice for you.

Know if it’s right for you

If you’re just trying to save a little money, you may get more than you bargained for – closing refinancing can cost thousands of dollars and totally negate any savings that mortgage refinancing could help you save. If you’re not sure what to do or need some help, give us a call. We’ll help you figure out if mortgage refinancing really is the best way for you to go. Visit our mortgage refinancing page today to learn more!

We’re expert Toronto mortgage brokers that understand every borrower and every mortgage is different – it’s all about making sure everything works for you, and that’s what we’re here for.