If 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!