Refinancing is the process that pays the
existing mortgage and/or any other legal claims against the
property and sets-up a completely new mortgage(s). There are
many reasons to why you should consider refinancing your mortgage:
If your monthly bills have gotten out of
control, you might be able to refinance your home and pay
them off. The advantage of doing this is to lower your total
monthly payments. You should have a mortgage specialist at
CanadianMortgageRates.com review your situation and make a recommendation.
Refinance a First & Second Mortgage
into a new First:
If you have two mortgages on the same property,
you can combine them into a new first mortgage, as long as
the total amount does not exceed 90% of the value of the property.
If the new mortgage is over 75% of the value of the property,
normal CMHC/GE Capital premiums and guidelines apply, and
one thing to remember here is that only outstanding amounts
can be combined - any discharge penalties and costs must be
paid separately at closing (please note that we have cash-back
programs to help with these penalties).
Financing a Renovation:
If you are doing major renovations (spending
over $15,000), it could be less painful monthly with a mortgage
as opposed to a loan or line of credit.
Financing the purchase of other investments:
You can use the equity in your home to finance
the purchase of investments, and also benefit from the lower
carrying costs of a secured line of credit or mortgage and
also write-off the interest costs against the taxable incomes.
Financing the purchase of investment
If you have the equity and have a desire
to be a landlord, you could take equity out of your property
by refinancing the mortgage to use towards the purchase of
an investment property. This is also called leveraging of
Financing children's education:
The best thing we can do for our children
is be good role models to them, teach them to be responsible
citizens, and give them a good base with a good education.
With the high cost of many things nowadays, as well as education,
it is sometimes difficult to have that kind of money in the
bank, but you many have it in the form of equity in your home.
Education is something they will never lose on.
To refinance your mortgage today to your
advantage, contact a mortgage specialist at CanadianMortgageRates.com or
simply APPLY ONLINE NOW with no obligation whatsoever.
Closing Costs related to Refinancing:
The regular costs related to the refinancing
process are: appraisal ($150-$214), legal fees & disbursements
($700-$1000), title insurance if survey not available ($225),
CMHC/GE Capital Premium is mortgage is high-ration (this cost
can be added to mortgage), PST when CMHC/GE Capital premium
is required, and any discharge penalties.