Here’s a few tips that can help you steer through the process and get the best option.

Decide Why You Want To Refinance

Before you decide to go through the process, you need to know why you are refinancing. There are some common goals and they include:

• paying off an existing mortgage faster by getting a shorter-term
• getting a fixed rate mortgage and better terms than an adjustable-rate product
• using your home equity for home improvements or debt consolidation. You can even pay for a child’s education with the money.

There are several different methods you can use to refinance an existing mortgage.

Add a HELOC

A home equity line of credit provides access to the equity in your house. It is secured by how much you’ve built up over the years. Homeowners need to adopt a realistic plan about what they will use the money for and how you’re going to repay it.

That needs to include payments on both the principal and interest. Remember, there’s usually no penalty for paying back large amounts early.

Break Your Mortgage

Homeowners can also eliminate their existing mortgage contract and take on a brand-new one. Before you take this step, it’s important to find out if there are appraisal and administration fees as well as a prepayment penalty.

There might also be a reinvestment and  mortgage discharge fee to remove charges on the current product and register the new one.

We are the Toronto mortgage broker that can handle your refinance for you. That includes looking into what’s called a blended rate which includes the current rate you’re paying and the one that’s currently available.

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