Refinance is the process of borrowing additional funds using the equity in your home – up to 80% of the current market value of your property.
You may want to refinance for many reasons, such as reducing your interest rate, accessing additional funds, consolidating debts, extending or shortening your amortization period to lower your mortgage payments or pay down your mortgage faster.
The process of qualifying for a mortgage refinance is very similar to the purchase process; the only difference is that you already own the property.
Begin your mortgage refinancing process early – at least 2-3 months before your actual renewal date. However, depending on your financial situation and current terms, you may not want to wait for the renewal date and refinance sooner.
For example: your current mortgage rate is much higher than mortgage rates on the market or you need some extra funds based on your current financial situation.
If you have equity in your home but are not planning to use those funds immediately, you can always consider receiving a secured credit line on top of your mortgage. Rates on secured credit lines are usually lower than with conventional credit lines and you only pay for the amount of credit used.
You can use funds from refinancing toward any purpose including investments, purchasing an additional property abroad, travel, and so on.
You also have an option to switch the credit line into the mortgage segment – at an agreed interest rate and amortization period – if needed.
Just call or email me and we will examine your financial situation to determine a solution that works for you!