Mortgage Refinance and Debt Consolidation

Mortgage Refinance and Debt Consolidation 2017-08-10T08:32:21+00:00
Mortgage Refinance in Regina

The recent jump in housing prices all across Canada over the past 10 years has made refinancing or debt consolidation very common practice. 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. For example, if your home is worth $300,000 today, we could refinance up to a maximum mortgage of $240,000.

Debt Consolidation Scenario

We have helped 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 recent clients. It clearly shows the money they were able to save each month.

Before Debt Consolidation
   Existing Mortgage
   Property Value $350,000
   Mortgage Balance $220,000
   Interest Rate 3.79%
   Term 5 Years
   Monthly Payments
   Credit Cards (19.9%) $200/mth
   Car Loan (7.5%) $550/mth
   Mortgage Payment $1132/mth
   Total Payments = $1,882/mth
After Debt Consolidation
   New Mortgage
   Property Value $350,000
   Mortgage Balance $245,000
   Interest Rate 2.59%
   Term 5 Years
   Monthly Payments
   Credit Cards (19.9%) $0/mth
   Car Loan (7.5%) $0/mth
   New Payment $995/mth
   Total Payments = $995/mth

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 $767 per month and have been able to use this money for many other needs.

Why Refinance Your Mortgage?

1 Lower Your Interest Rate and Payments

Today’s record low interest rates provide a great opportunity to home owners to lock in a new mortgage rate for a new term. This will provide you with long term security, a lower mortgage payment, and save you thousands in interest over the life of your mortgage!

2 Consolidate Debt

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.

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 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.

5 Purchase a Second Home

If you are looking to buy your children a home while they attend school, or a vacation home for the family, using the equity in your home may be the easiest and most cost effective solution. Many families are buying homes in other countries such as the United States or Mexico. It is nearly impossible to acquire lending in these countries and if you do the rates are much higher. Using your home equity for these purchases makes the most sense!

Getting Started

The first step to refinance your mortgage is to fill out our online mortgage application. Once you complete this form one of our local mortgage broker will contact you to discuss your situation, calculate the numbers for you, and determine if refinancing is right for you. Click APPLY NOW below to get started!

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