Table of Contents
- Mortgage Refinance In Ontario
- Reasons To Refinance Your Mortgage
- What Are The Benefits Of Mortgage Refinance
- How To Refinance Your Mortgage
Mortgage Refinance In Ontario
When you refinance your mortgage, you pay off your old one and start a new one with the same or a different lender. You may want to refinance your mortgage to achieve a lower interest rate, access the equity in your home, or consolidate your debts. However, breaking your mortgage may result in a significant pre-payment penalty riskier mortgage refinancing. Ensure that you do enough research.
Reasons To Refinance Your Mortgage
Refinancing a mortgage is not just to obtain a cheaper interest rate. Refinancing your mortgage may also be utilized to access the equity in your house and consolidate your debts.
Getting A Lower Interest Rate
Depending on the amount of the pre-payment penalty and the size of your outstanding mortgage, refinancing to receive a lower interest rate may save you a significant amount of money over time. Those with variable-rate mortgages expect to pay a three-month interest penalty. Those with fixed-rate mortgages expect to pay the larger of three months’ interest or the difference between the variable and fixed-rate mortgage interest rate differential penalty (IRD). Don’t let fines dissuade you from refinancing; knowing the figures will assist you in determining whether or not a refinance would save you money.
Accessing Equity (Cash) In Your Home
The equity in your home could come out of your mortgage refinancing, so you might be able to get money out of it. You might be able to get up to 80% of the value of your home, minus any debt that you still owe. You can use the money for investments, home improvements, or your kids’ education. If you want to get this money, there are many ways, like breaking your mortgage, getting a home equity line of credit (HELOC), or getting a new mortgage from your current lender.
Refinancing To Consolidate Debt
As long as you have enough equity in your home, you might be able to use the money you have built up in your home to pay off debt with high-interest rates by refinancing your home. For example, if you have a lot of debts, like a car loan, a line of credit, or credit card bills, you might be able to get rid of them all by refinancing your mortgage. There are many different ways to do this.