A Simple Guide To Refinancing

Let’s take the complexity out of your EQUITY.

Many times people need access to their equity. This is called a refinance. You are changing the title to the home. A refinance is a change in the amount owed. You are paying off your existing mortgage and obtaining a new higher amount. 

Firstly, with this higher amount people can do many things:

1. Payoff debt
2. Renovate their home
3. Put money in investments (RRSPs, TFSA, etc.)
4. Provide down payments to loved ones for their home purchase
5. Legal separation which involves the division of assets

Secondly, this higher amount should:

1. Generally, lower your interest costs
2. Increase the value of the home, or increase cash flow

To tell the truth, there are some cautions you want to avoid as well:

Penalties

• I.R.D. – interest rate differential
• 3 months Interest –  Canada website on mortgage penalties. 

 Other costs associated with doing the refinance 

• Lawyer costs 
• Lender costs (see B-Lending)
• Brokerage fee costs possibly (see B-Lending)
• Reinvestment Costs 

Furthermore, you want to make sure you have your income, and documents ready… and that’s where we come in. 

At Mortgage Suite we can make the refinance streamlined:

• We are 100% online. 
• plus 121 Lenders to Source your approval 
• F.C.T. platinum program making the refinance process streamlined. 

I also wanted to show you a quick glance at the refinance numbers below just to give you an idea of what it looks like to perform a refinance. This client had a small penalty, that we were able to reduce even lower by going back to the same company. Sometimes they reduce by 20%. We were lucky on this one.