Canadian Mortgage Refinancing

“Getting The Most Out of Your Canadian Mortgage Refinancing Efforts”

A Canadian Mortgage Refinancing typically occurs in one of the following circumstances:  debt consolidation opportunities and periods of interest rate decline.

The primary goal in both cases is to lower the cost of borrowing and to also potentially improve monthly cash flow.

To get immediate assistance with your mortgage refinancing needs, click here to speak to mortgage refinancing specialist, Joe Walsh.

There can be instances when, based on timing, both debt consolidation and total debt reduction can both be achieved together, although this has more to do with chance than any planning or strategy you try to follow.

While there are more situations where mortgage refinancing can occur, the two mentioned above are the most common and will be the focus of this discussion.

In the case of debt consolidation, the mortgage or mortgages registered on a property are combined with a specified amount of outstanding debt (typically unsecured debt from credit cards and term loans) to form a new mortgage that will be registered against the property.

The new mortgage will be completely rewritten and will have its own terms and conditions relevant to the lender and the time it was put into place.

The amount of refinancing that is possible will depend on the amount of equity that exists in the target property, the strength of borrower credit, and the strength of borrower repayment, similar to what you would expect in an application for mortgage for a new home purchase.

When all or part of the refinancing motivation is to take advantage of lower interest rates in the market place, the opportunity and benefit of refinancing your mortgage is based on the projected cost savings of the action minus the related costs of breaking or paying out the existing mortgage.

The costs associated with breaking an existing mortgage can include lawyer fees for removing the old mortgage registration and adding the new one, appraisal fees for a third party to provide an up to date market assessment of the property, and prepayment penalties written into the terms and conditions of the mortgage.

The most significant of the potential costs is the prepayment penalty. If you are are trying to refinance a mortgage that has a fixed interest term, then there will be a penalty associated with not keeping the mortgage until the end of the term. If you have an open or floating interest rate, you can refinance the mortgage without any form of repayment penalty.

There are numerous mortgage programs available for the purposes of refinancing either for debt consolidation or just interest rate reduction. Each mortgage program will have different pros and cons to consider and some will be more relevant to your situation than others.

The best way to assure your mortgage refinancing efforts land the best potential deal is to give me a call so that I can quickly assess your situation and review the best available options relevant to your situation with you.

Click Here To Contact Joe Walsh, Your Canadian Mortgage Refinancing Expert

From Refinancing To Home

About the Author Joe Walsh

I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel