Is Mortgage Refinancing Right for You?

Let’s face it, we all want to pay off our mortgage as soon as possible but sometimes you need a little help. Maybe you’ve gotten behind on your payments, maybe your interest rates are spiraling out of control – either way you need to know that you’re taking control of your mortgage, not the other way around. With interest rates now at the lowest they’ve been for years and soon to rise, now is the time to take advantage and get the deal that works out best for you.

The Good:

Sometimes mortgage refinancing comes with some great perks like:

Easy Access to Credit Means Cheap Money

When interest rates are this low, lenders are willing to work with just about anyone. Even if you have bad credit when you work with one of our Canada mortgage brokers you’ll get the help you need to find a mortgage that works for you. But while interest rates are low now, they aren’t going to stay this low forever!

Better Options than When You Started

When you first took out your mortgage you probably didn’t have the best credit – after years of timely payments you’re going to have a better track record that lenders will be interested in. All that hard work is finally going to pay off with better options for mortgage refinancing. Say bye bye to being a financial wallflower and hello to an option you can finally live with.

You Have More Leverage Now

You have something else you didn’t have when you started: equity. With equity in your home you’ll be able to secure a much better deal this time around. While you may have to give up a little equity to get a better interest rate, but for most it’s a great trade-off.

If you’re not sure what kind of equity situation you have, talk with one of our brokers.

The Bad:

Not everyone is going to benefit from mortgage refinancing.

Fees Can Cost You Big

Closing a refinance can be just as costly as getting a new mortgage – don’t do it just to save a point or two! You should be getting a seriously great deal on mortgage refinancing before you pay fees. Talk with one of our Canada mortgage brokers to find out if you’re getting the best rate for you.

Not Everyone Can Qualify

It’s important to understand that not everyone can qualify for a mortgage refinance their first time out – depending on your credit, how much equity you have and how much more time you’re willing to put into a mortgage will give you an idea if this is really the right way for you to go.

You’ll Extend the Life of Your Mortgage

If you’re trying to pay off your mortgage early, you might be hit with expensive pre-payment penalties and a few years of extra payments. Extending the life of your mortgage may not always be a great thing, especially if you want greater mobility (aka the ability to move out and move on).

Sometimes it’s a great fit, sometimes it’s not. Talk to one of our Canada mortgage brokers today or visit our mortgage refinancing page here to see if mortgage refinancing is really the right choice for you.