Refinancing a mortgage simply means paying off an existing mortgage and replacing it with a new one. Homeowners choose this strategy for a range of reasons.
The most common benefits of refinancing:
You’ll need to pull some documents together, and there may be costs that apply, when you’re switching your mortgage to another lender. Don’t let this discourage you from finding out more. *It doesn’t cost you anything to check out your options or get a second opinion*, and it may save you a ton of money and/or hassle in the long run. When you switch your mortgage to a new lender, you will go through an approval process similar to when you took out the original mortgage. You can either assign your existing mortgage or you can apply for a new one should you want to borrow a larger amount to consolidate your high interest debt or complete some renovations.
Your lender may charge a discharge fee, and you may need to pay legal and appraisal fees if you are getting a completely new mortgage instead of switching your existing one. We can help you to understand your prepayment features of your current mortgage and whether this can be factored in to decrease any penalty incurred. At that point, you should assess if the money you will save by switching to a better interest rate offsets those costs. The cost for your mortgage life insurance may also change. You won’t have to pay for my services (OAC) because typically the lender provides a finder’s fee after the mortgage with you is completed. It’s a win-win!
If you think you might want to look into refinancing your mortgage, whatever the reason, even if you are just looking to benefit from a lower mortgage rate, we can help you review your options and decide if this option can help you in your own individual situation.
If you would like to discuss this further, please don’t hesitate to contact us!
At Active Bankers, we are more than just a mortgage company; we are your trusted partners on the path to financial success and homeownership. With years of experience in the industry, we understand that navigating the complex world of mortgages can be a daunting task. That's why we're here to simplify the process, offer expert guidance, and provide tailored solutions that empower you to achieve your homeownership and financial goals.
2560 Matheson Blvd. East, Suite , Mississauga, Ontario,L4W 4Y9
info@activebankers.ca
+1 416 456 8076