With mortgage rates starting to head up, refinancing a mortgage can still make great sense at these historically low interest rates in Canada.
As the global economy recovers and in particular, the Canadian economy thrives with housing having erased most losses of two years ago.
Refinancing your Ontario mortgage is tantamount to applying for a secured home loan in order to pay off higher interest rate loans and credit card balances. In so doing, you can save hundreds or even thousands of dollars as some credit card interest rates can approach 20 percent. Some department store cards, or even the Home Depot credit card can quickly become a very high interest rate loan if not paid off in time.
Needless wasting of hard earned dollars by paying too much on interest loans does not have to be the norm. With a simple consulation and some paperwork, big savings on interest expenses can be achieved within a week or two of applying. As there are fees related to refinancing a mortgage, these factors need to be taken into consideration to determine your net savings if any by doing a “refi”.
Having access to extra cash is also a great reason to refinance. Whether you are taking the leap and putting money into the home to finish the basement, landscape or other home related expenses, or a combination of maintenance and liquidity, a home equity loan or line of credit may be the answer.
For most people, the home is the largest asset they possess. Being able to get at some equity during a time when the money can be put to better use is also a good reason to refinance your mortgage.
Some people purchased their homes while interest rates were still higher. By converting into a lower rate offered today, savings can also be obtained even if extra cash or credit card consolidation is not needed.
Some homeowners use the home as a cash generator as it goes up in value. This though, was one of the errors that lead to problems in the States when housing prices come back down. So refinancing should have a purpose besides just getting extra cash out of the home, and contingencies should be planned for before committing to a mortgage refinance.
It is best to consider your options with a Burlington Mortgage broker who knows the Southern Ontario real estate market as well as current options for getting refinanced.