Mortgage Interest Rates are at historical lows.
Explore the options you have to take advantage of this opportunity. It is simpler than you might think.
Mortgage Refinance to lower monthly payments
A mortgage refinancing does not necessarily have to increase your mortgage payments. With mortgage rates at historical lows, the decision to refinance your mortgage could simply be to lower your monthly payments by securing a lower interest rate. An assessment of your current situation will determine the benefits and draw backs when considering a mortgage refinance. Contact Us for a free, no obligation, analysis of your current mortgage situation.
Mortgage refinance for Debt Consolidation
Although many home owners hesitate when considering the possibility of taking on more mortgage debt, ultimately it may make sense for them to do so for several different reasons. With the high rate of unsecured debt growing at approximately 30% per annum in Canada, and disposable income growing at approximately 3% per annum, consumers on average are spending money faster than they are making it. For this reason, many look to the increased equity in their homes to increase cash flow by consolidating their outstanding debt. This debt consolidation approach actually saves the consumer money, especially with the mortgage rates being at an all time low. The consumer also saves money by a significant margin by consolidating the higher interest rates of the unsecured debt into the low mortgage interest rates.
Other Reasons to Refinance Mortgage
Home renovations or improvements is very common today. With the high cost of homes these days, many are choosing to make changes to their existing homes by renovating their basement, improving and updating their kitchen space and their bathrooms. There are those who do an equity take-out for investment purposes, or to purchase an investment home or to buy that dream recreational property in cottage country. With the higher cost of second mortgages, consumers with equity for the most part will choose to combine existing first and second mortgages to improve their cash flow situation.
Whatever your reason is to consider mortgage refinancing, with the low mortgage interest rates today and the flexibility the market has allowed with increased equity in your home, it may make sense to consider a mortgage refinance.