Mortgage Refinance & Home Equity in Canada
Mortgage Refinancing Canada
Whether it be a relatively straight forward mortgage refinance of your existing mortgage balance, or utilizing your Canadian Home Equity for any other purpose desired, it is a strategic financial decision that requires the assistance of a mortgage broker or agent expert to get you the best deal from the hundreds of potential mortgage solution options available. Whether you want to:
- lower your monthly mortgage payment
- consolidate debt
- renovate
- pull cash out of your home
- increase your flexibility with a credit line
- break your mortgage
Ask a Mortgage Pro can point you in the right direction and connect you with your desired end result!
Tip: Did you know that when mortgage refinancing, your prepayment options may figure in to your advantage whether you have exercised them or not? It pays to inquire from the mortgage experts at Ask a Mortgage Pro.
Consolidate other Debt
Most unsecured debt is priced by your Canadian bank at a higher rate than your mortgage in order to compensate them for the higher risk of loss if you default. For many people it only makes sense to use available home equity to pay out this debt, as it typically reduces interest costs significantly.
If the total of the existing Canadian mortgage and the debt to be refinanced is less than 80% of the value of your home, and you qualify in terms of income and credit standing, refinancing your first mortgage should be a breeze.
In fact, using an Ask a Mortgage Pro Mortgage Consultant is the perfect way to achieve this consolidation. Get an ATM Pro mortgage agent working for you now.
Financing Strategy for Renewing/Switching
As an experienced homeowner and borrower, you are probably already very familiar with the mortgage products and services of your current financial mortgage lender. It could be to your advantage to use another lender. Contact an ATM Pro mortgage agent today to help you make the switch. As well, here's some important information to keep in mind:
What type of mortgage solution should you choose? Today, more than ever, there are numerous mortgage options available. Don't be confused. Here at Ask a Mortgage Pro, our Mortgage Consultants can help you find the best product for your needs and negotiate for you the best mortgage rates in Canada.
They do the research for you, enabling you to avoid the frustration and confusion of having to do it yourself, and explain the available options. Mortgage categories Fixed-rate: 6 month, 1, 2 & 3 year (open, closed and closed-convertible)4, 5, 7 & 10 year closed Variable-rate: 3, 4 and 5 year (open, closed, closed-convertible and capped) Split-term: Combination of all possible terms (6 month through 10 years)
What type of mortgage should you choose?
Today, more than ever, there are numerous mortgage options available. Please contact one of our mortgage broker or agent professionals and your questions and concerns will be addressed.
Don't be Confused
Here at Ask a Mortgage Pro, our Mortgage Broker and Agent Consultants can help you find the best mortgage solution product for your needs and negotiate you the best rates in Canada. They do the research for you, enabling you to avoid the frustration and confusion of having to do it yourself, and explain the available options.
Canadian Mortgage Categories
Fixed-rate:
6 month, 1, 2 & 3 year (open, closed and closed-convertible)4, 5, 7 & 10 year closed
Variable-rate:
3, 4 and 5 year (open, closed, closed-convertible and capped)
Split-term:
Combination of all possible terms (6 month through 10 years)
Self-directed RRSP:
A specialty mortgage rate - term optional - within CMHC guidelines. Invest your own RRSP funds into all or part of your home mortgage.
What terms & payment options should you choose?
It all depends on what you want. Your Ask a Mortgage Pro Mortgage Consultant will assess your personal mortgage situation and needs to find the best mortgage for you at the best rate.
Short-Term Risk & Variable
If mortgage rates in Canada are low and stable, and/or you are prepared to take a risk, you can generally pay a lower rate with a short-term mortgage. You simply roll over your term every 6 months, or float your rate against prime, with the option of locking in to a longer term at a later date.
This is not for everyone, however, as sudden upward rate movements can have a significant impact on your payments. You may want to discuss this with your Ask a Mortgage Pro Mortgage Broker or Agent Consultant.
Long-Term Mortgages
Any term 3 years or longer is considered "long term" in today's Canadian economy. Because long-term rates are usually higher than short-term rates, you may not want to choose this option. On the other hand, by locking in you will avoid exposure to rate increases. You'll have the comfort of knowing exactly what your mortgage payments will be and you'll be able to manage your budget accordingly.
Split-Term Mortgages
A mortgage solution which allows you to minimize - or hedge - your interest rate risk by splitting your mortgage into 5 parts. For example: A $150,000 mortgage could be split into five $30,000 segments with terms of 6 months, 1, 2, 3 and 5 year terms negotiated at today's best rates. The average rate would rise or fall much more slowly than changes in the market, however, as only the shorter terms are affected by even the most volatile rate movements over the first few years. Confused? Talk with your Ask a Mortgage Pro Mortgage Broker or Agent Consultant.
Canadian Mortgage Prepayment Options
Many mortgage financing lenders allow you to make a lump sum payment - usually 10% to 20% of the original principal balance. In addition, many mortgage products now include a "double-up and skip-a-payment" feature. This lets you "bank" extra mortgage payments for a rainy day, at which time you can "skip" them if you need to. Ask your ATM Pro mortgage broker or agent to advise you on your options today!
Mortgage Payment Changes
Most mortgages solutions within Canada now allow the amortization to be adjusted by increasing the payment on closed terms by 10% - 20% per year, once annually.