Many Canadians find that they may be able to reduce their interest rates and monthly payments by consolidating some or all of their unsecured debt into a mortgage or secured line of credit. The reduction in interest rates by securing the debt and amortizing over a longer period of time can substantially improve your overall financial situation and cash flow and allow you to feel more in control.
It is my experience that individuals can feel hesitant to seek out help as they are behind in their monthly payments. Sometimes individuals feel their financial situation is beyond help and continue to fall further behind. It costs you nothing to call me and inquire, I’d be glad to talk with you and discuss the different options that may be available to help you get control of your debts.
Refinancing Your Mortgage
Refinancing is the practice of replacing your mortgage with different terms and conditions. This may allow you to obtain a better interest rate, reduce your payments or increase your mortgage to allow for purchases or consolidate debt.
You do not have to wait for your mortgage to mature to look at refinancing to reduce your interest rate. You can change the terms of your mortgage contract and (costs to be discussed further down) because the interest rates offered in the market place today make it smart to do so. You don’t necessarily have to sell your house to break your mortgage. In fact 50% of us break our mortgage for one reason or another halfway through the 5-year term. Yes, it can come at a cost. However, we will examine the costs and determine if it’s worth it in terms of interest savings and if it is the right thing to do relative to your family goals. The cost factor mentioned earlier refers to mortgage set-up fees and the pre-payment penalty involved with breaking a mortgage before it matures. The fine print will advise what type of pre-payment penalty would be levied in the event you break your mortgage. Some mortgages only charge 3-month interest and others charge an interest rate differential charge. No matter what, we will capture all, if any costs and review them together. The refinancing has to make sense.
Another objective for refinancing could be to provide for home improvements and renovations, a vacation property, education, business financing, helping family members or to buy that new Harley Davidson you’ve been dreaming about (I’m guilty here). As a professional my job is to provide alternatives and show the costs and benefits of each refinancing opportunity. At the end of the day, you will decide what’s in line with your family’s dreams.
Let a professional help you. Call 905-302-4171 today!