A homeowner can choose to replace their current mortgage loan with a new one
through refinancing. Reasons to consider a refinance could be to get a lower
interest rate, change the loan amount, or the term of the loan.
You do not have to refinance with the lender who holds your current mortgage, and working with a mortgage broker will save you time shopping for lenders and rates because Dave and his team do it for you.
There are 3 types of refinance loans:
Rate and Term Refinance
This is for borrowers who only want to change the loan term (length of the loan) and the interest rate.
Cash-out Refinance
In addition to a change in the rate and loan term, a cash-out will allow for an increase in the loan amount enabling the borrower to walk away with cash to use for paying out debts, doing some renovations, gifting to a family member, or whatever you decide to use the funds for.
Simple example: The current mortgage balance on your property is $350,000, but you are requesting a new mortgage amount of $375,000. This would result in you getting a cheque for $25,000 upon closing of the new mortgage.
Cash-in Refinance
A mortgage option for homeowners who want to reduce their interest rate, change the loan term, and pay down the existing mortgage balance (typically when a borrower has come into unexpected funds).
A home equity loan product differs slightly from a refinance because it is a new loan on the property in addition to the existing mortgage. A homeowner is borrowing against the value of the property, minus the existing mortgage loan.
There are 2 types of home equity loans:
Home Equity Line of Credit (HELOC)
A HELOC is for borrowers who DO NOT want to alter their existing mortgage but want to get access to equity in their home. This is great option for borrowers who only want to pay interest on equity when it is used.
Home Equity Loan
Often referred to as a second mortgage, a home equity loan is an additional mortgage that is placed on the home and the funds are paid out to the borrower at closing. Typically, second mortgages have higher interest rates than a first mortgage and can sometimes have additional fees associated with the set up.
Thinking about refinancing? Now is the perfect time to take control of your financial future.
Lower your monthly payments, reduce your interest rate, or tap into your home’s equity. Whether
you’re looking to save money or consolidate debt, refinancing can open up new opportunities.
Dave can help you explore your options and see how much you could save.
Take the first step in determining what you can borrow with our mortgage calculator below,
allowing you to easily find your ideal budget and monthly payments.
Explore our diverse range of mortgage calculators designed to simplify your home financing
journey. Each of these calculators are user-friendly and designed to empower you with the
information you need to make informed decisions. Start planning your financial future today!
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