If This Is You, It Might Be Time To Refinance
Updated: Mar 13
Record numbers of Canadians refinanced in 2020. The costs typically include break fees for your existing mortgage, plus an appraisal and legal fees - but the benefits could be 10x that amount. Here are the top 8 reasons you might want to refinance in 2021 if you haven't already.
YOU'RE DROWNING IN DEBT
Unsecured debt like credit cards come with high interest rates. If you have equity in real estate this could be used to lower the monthly payments, to actually get out of debt instead of just paying the minimum. Having one combined low monthly payment can be a confidence booster, too.
YOUR "EMERGENCY SAVINGS" IS A VISA CARD
Experts recommend having at least 6 months' living expenses saved so you can still pay the mortgage if you lose your job. A home equity line of credit (HELOC) can provide peace of mind while you're still saving, with the flexibility of low interest-only payments if needed.
YOU'RE BULLISH ON BITCOIN
Experienced investors with significant real estate equity may want to consider diversifying into other asset classes, such as digital currency or ETFs. An accredited financial professional can help you decide if this high risk, high leverage strategy could enhance your portfolio.
YOU LIVE ON ZILLOW
If Daniel Levy's SNL sketch hit a bit too close to home, maybe it's time to take things off-screen. Refinancing could help you access a 5% or 20% downpayment for a cottage or investment property, plus help you qualify for the new mortgage. This process can take a couple of months, so start now - before you fall in love.
YOU GOT A FIXED RATE IN 2018
Bad news: you locked in after interest rates peaked. Good news! Rates have plummeted since. Depending on the terms of your mortgage, you may be better off ripping up that contract and getting a new one. Refinancing could mean your next mortgage payment is hundreds of dollars less, freeing up cash flow for better use.
YOU RENEWED WITHOUT SHOPPING AROUND
It's easy to sign a renewal agreement, but shopping around takes work. A mortgage professional can make this process a lot easier and advise if your current lender is still the best fit, and not just the most convenient. Don't wait until your next renewal date to find out - do it now.
YOU'RE COUNTING THE DAYS UNTIL RETIREMENT
..and that sweet, sweet pension (if you're lucky). Once you've left the workforce your mortgage options shrink dramatically. Consider getting a flexible home equity solution in place before it's no longer possible, because the best time to refinance is before you need to.
YOU HAVE AN UNFINISHED BASEMENT
Equity in your home can be re-invested to increase the property value and improve your living situation. Consider how income from a new basement suite could boost your family's budget, or how a real WFH office space could save your sanity.
YOUR BEST REFINANCING OPTIONS
If you qualify, it could be possible to access up to 80% of your property value. Contact me to find out your best refinancing options, and get a free online appraisal report to see how much home equity you have available.
Click below to book your complimentary 1x1 consultation now, and start making smarter mortgage decisions today.