Mortgage Refinancing

Mortgage Refinancing: Increasing the principal amount of your mortgage and taking more capital out of your home. You may want to refinance if you need to borrow more money to consolidate other debts that may have a higher interest rate, or to access the equity built in your property for other investments.

Mortgage Renewing: Changing the rate and term of your mortgage at maturity. Usually, you would renew with the same lender and obtain a new interest rate offered for a specified term (1-5 year Fixed or Variable). However, switching lenders allows you to stay competitive and may allow us to get you a better interest rate on your mortgage.

For the purpose of refinancing or renewing, standard lending documentation is required. This may include, but is not limited to: personal information, employment letters, pay stubs, purchase contracts, down payment proof, existing mortgage statements and net worth statements. However, each client is different so the documents required will vary. Our initial consultation will be sufficient to distinguish what documents will be necessary for your loan!

Open mortgage: You are eligible to pay off your mortgage or renegotiate at any time with no penalties. These normally attract much higher interest rates due to the flexibility of pre-payment.

Closed mortgage: Depending on your terms and conditions, you may be eligible for a refinance during the term of your mortgage. Do keep in mind there will be a payment penalty of either: 3 months interest or an IRD (Interest Rate Differential).

Since obtaining your initial mortgage, your situation may have shifted. If you are looking to increase your cash flow, whether it’s for your child’s education, a new car, career change, vacation, etc. refinancing your mortgage may be an option for you to take all the necessary changes into account.

If you have plans on selling your home soon, you may want to consider obtaining a shorter term mortgage with more flexible conditions to avoid penalties. There are various options to reduce your penalty upon sale, so speak to your mortgage professional to find out which term and mortgage type is right for you and your future plans.

Good credit history, income, net worth, and other supporting factors will definitely play to your advantage. However, the mortgage with the best rate may not be the best option for you; many mortgages offer low rates, but come with hefty penalties when broken early or sold prior to the maturity date. By understanding your future goals and unique scenario, we will guide you towards the correct mortgage for your specific needs.