Mortgage Refinance and Debt Consolidation

The recent jump in housing prices over the past 5 years has made refinancing or debt consolidation very common practice all across Canada. The equity in your home can be used in many ways to enhance your standard of living. At a time of historically low interest rates, it makes sense to take advantage of this opportunity.

How to Qualify

You must own a home and you must have equity in your home. Today we can refinance up to 80% of the value of your home with no CMHC fees or up to 90% with fees.

Why Refinance Your Mortgage?

1 Consolidate Debts

Consolidate Debts such as credit cards, loans, or lines of credit. If your monthly bills have gotten out of control, you might be able to refinance your home and pay them off. The advantage of doing this is to lower your total monthly payments.

2 Purchase an Investment Property

Mortgage rules now require a minimum 20% down payment to purchase investment properties. If you don’t have the funds available in liquid cash, refinancing your existing property to access your current equity is a great way to get started.

3 Finance a Renovation

If you have already or plan to renovate your home, you will realize this can be a costly endeavour. Whether you are developing your basement, renovating your kitchen or bathroom, the costs can add up and the most cost effective solution is adding this to your mortgage.

4 Purchase Investments

You can use the equity in your home to finance the purchase of investments including RRSP's, stocks, bonds, and mutual funds that will maximize your net worth and retirement plan. Borrow at today’s historical low rates and leverage the equity in your home.

5 Eliminate Bad Debts

Using the equity in your home can help you escape personal financial problems from a troubled time in your life. Refinance your home to pay off bankruptcies, collections, consumer proposals and any other late payment obligations.

Debt Consolidation Scenario

We helps many clients leverage the equity in their home to consolidate debt and lower their overall payments. The following example was the case for one of our clients. It clearly shows the money they were able to save each month.

As the example shows, we were able to refinance their current mortgage to pay off two outstanding debts and significantly lower their total monthly payments. They saved a total of $960 per month and have been able to use this money for many other needs.

Frequently Asked Questions

What if I have bad Credit?

We have access to many alternative lenders who work with people that the traditional banks and lenders will not work with. Our lenders look past a person's credit score.

What does it cost?

The costs to refinance your home do not have to be paid up front. They can be included in the new mortgage established. Costs can include property appraisal, legal fees to register the new mortgage, penalties from your current institution to break the mortgage, and lender insurance premiums.

Can I simply switch my existing mortgage?

Yes, if your existing mortgage is up for renewal within the next 120 days we can switch the existing loan to one of our lenders at a rate that is less than your bank will charge and there will be no legal fees, penalties or broker fees payable by you.

What if I am locked into my current mortgage?

We can always look at options to either break your current mortgage or acquire secondary financing. Our mortgage professionals can do all the calculations for you to determine the best option for you.