Mortgage Refinancing
and Debt Consolidation
The Equity in Your Home is Huge!
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What does refinancing mean?
Refinancing is
essentially taking out a new mortgage to
replace the one you currently have. With the recent jump
in housing prices over the past 5 years,
refinancing or debt consolidation has become
very common practice all across Canada.
Canadians have realized that the equity in
their home can be used in many ways to
enhance their standard of living. Whether
you need to pay down debt, acquire assets,
or enhance your wealth, refinancing has
become one of the most popular financial
decisions consumers are making. New mortgage
programs allow you to access more equity
than ever from the value of your home, and
at a time of historically low interest
rates, it just makes sense to take advantage
of this opportunity.
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The
Program
Lenders
allow you to
Refinance
your mortgage up to 80% of your Home's
Value. A high ratio mortgage insured by
either CMHC or Genworth will allow home
owners to
refinance
up to 95% of the value of their home. This
program allows you to extend your mortgage
to a maximum 40 year amortization. This is a
great way to lower your monthly payments!
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Why Refinance Your
Mortgage?
There
are many reasons to refinance your mortgage.
Having financing secured by real estate
allows you to borrow money at the lowest
possible interest rates. Because of this
many people are able to take advantage of
the equity in their homes to enhance their
wealth, acquire assets, or simply live at a
higher level such as:
Pulling
equity out of your home at today's great
interest rates can save you as much as 24% in interest
charges! This allows people to eliminate and
consolidate high interest debts such as:
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Credit
cards
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Car loans
-
Lines of Credit
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Personal Loans
It
can also be used to escape from or avoid
personal financial problems such as:
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Collections
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Bankruptcies
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Consumer Proposals
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Getting
Pre-Approved for a Mortgage Refinance
The next
step is to obtain a pre-approval from a
bank or lender. A pre-approval is simply
a rate hold, typically for 120 days. A
mortgage broker will help you acquire
the pre-approval so you are confident
you have the best product.
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Get Pre-Approved For
Your Mortgage Refinance...Its
Quick And Easy!
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Debt
Consolidation Example
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.
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Before
Debt Consolidation
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After
Debt Consolidation
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Existing
Mortgage
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TMG
Mortgage
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Property
Value
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$225,000
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Property
Value
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$225,000
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Mortgage
Balance
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$145,000
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Mortgage
Balance
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$167,000
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Interest
Rate
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7.5%
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Interest
Rate
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5.5%
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Term
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5
Year
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Term
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5
Year
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Monthly
Payments
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New
Monthly Payments
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Credit
Cards
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$250.00
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Credit
Cards
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$0.00
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Car
Loan
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$550.00
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Car
Loan
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$0.00
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Mortgage
Payment
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$1060.75
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Mortgage
Payment
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$1019.75
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Total
Monthly Payments
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$1860.75
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Total
Monthly Savings
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$841.40
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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 $841.40
per month and have been able to use this
money for many other needs.
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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, lender insurance premiums and in
extreme cases a small broker fee.
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.
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Getting Started
In order to take
advantage of this program you must be a home
owner and you must have equity in your home.
A question I get many times is “Can I get a
mortgage for more than the value of my
home”. The answer is NO! Lenders will never
finance a property for more than the
appraised value!
The first step is to
talk to one of our mortgage professionals.
They can help you calculate how much you can
save and determine if refinancing is the
correct decision for you.
We are always
available to help and there is never a cost
to you.
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Questions
- Contact Us
Although we have provided a
lot of information about refinancing your
mortgage on our website,
sometimes it is best to talk directly with a professional to help answer any
questions you might have. At
SaskHomeBuyer.com, we are always here to
help! Our services are FREE and we will make
certain you are taken care of every step of
the way!
If you have any questions, please feel free
to contact Miles Zimbaluk anytime! Miles
helps clients in every province from coast
to coast and is
available at the numbers below, days,
evenings, and weekends!
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Miles
Zimbaluk,
Mortgage Broker
TMG
The Mortgage Group
Regina,
Saskatchewan
Phone:
306-584-9280
Toll
Free: 866-504-2050
Cell:
306-533-3039
Fax:
866-397-9189
Email:
miles@saskhomebuyer.com
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