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Learn More About Mortgage Refinancing

Do you need capital for a major project or to cover unexpected expenses? If you own real estate, whether it’s a home or a business, mortgage refinancing is a strategy that allows you to access a significant amount of money. When it comes to this much money, it’s always best to talk to an experienced mortgage professional: Refinancement Hypothécaire can help!

What Is a Mortgage Refinance?

Refinancing a property is an action that allows you to re-borrow money. A mortgage refinance is based on the difference between the current value of your home and the mortgage you still owe. If you own a home valued at $300,000 on which you owe $200,000 in mortgage, its equity is $100,000.

This new source of credit opens many doors and can be used for a variety of projects, such as renovations, buying a car or a cottage, or to cover expenses. This is a big financial decision, so make sure you talk to professionals about whether or not a mortgage refinance is the right solution for you. Experts at Refinancement Hypothécaire will be happy to help you!

Find Out About the Many Benefits of a Mortgage Refinance Today!

How Much Can I Borrow When Financing My Home?

Depending on your current situation and your current mortgage payment, you can borrow up to 80% of the equity of your property. Therefore, it is to your advantage to do a mortgage refinance close to the maturity of your current mortgage. This amount may also be affected by some additional fees. 

Talk to a Mortgage Consultant to Find Out How Much You Can Get from a Refinance 

Why Refinance Your Home Mortgage?

A mortgage refinance can help you in many situations by giving you access to capital at an advantageous interest rate for important expenses. This money can then be used for different projects, to cover certain expenses and to consolidate your debts!

Release Capital for a Project or Expense

Refinancing your mortgage allows you to obtain up to 80% of the equity of your home, which is the current value of the property minus the amount you have to pay on your mortgage. Mortgage refinancing is often used to finance home renovations, the purchase of a property or a car, and much more! It is also a way to free up capital to cover unexpected expenses at a competitive mortgage rate.

Refinance to Get a Better Mortgage Rate

You can refinance your mortgage to take advantage of a lower interest rate than when you signed your loan a few years ago. If rates have dropped since then, refinancing can be a smart financial move that saves you money in interest costs in the long run. 

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Consider the Changes of a Mortgage Refinance Before You Make Your Decision

It’s important to run a mortgage refinance calculation to make sure you profit from this strategy. Ask our mortgage brokers about the costs you may have to pay – such as penalties – to evaluate this alternative.

Consolidate Your Debt into a New Mortgage Contract

Debt restructuring with a mortgage refinance is a great way to consolidate all your debts into one mortgage. The capital freed up by refinancing can be used to pay off the majority of personal debts, for example:

  • Car loan;
  • Personal loan;
  • Personal line of credit;
  • Credit card;

Combining all of these payments into one monthly mortgage payment, at a much lower interest rate, is a great way to manage your debt. Interested in debt consolidation services? The consultants at Refinancement Hypothécaire have the expertise to help you through the process and present you with the best options available.

How Much Does It Cost to Refinance My Home?

As with any change to a contract, there are various fees that will need to be covered by the mortgage refinance applicant. First of all, since the funds granted will be based on the difference between the current value of your home and your mortgage balance, you will have to pay an appraisal fee. Legal fees and certain penalties are also imposed by your financial institution when you break a mortgage contract. Refinancement Hypothécaire can help you through the process to minimize costs while taking advantage of current rates! 

Talk to Our Mortgage Refinancers to Compare the Benefits 

It is important to do a complete assessment of your financial situation before committing to a mortgage refinancing process. Refinancement Hypothécaire consultants can help you assess the implications of refinancing your home.

When Should I Do a Mortgage Refinance?

To avoid legal fees and penalties, it is ideal to refinance your mortgage close to the maturity of your current mortgage. The more you have already paid off, the more you will be able to borrow! However, we understand that this is not always possible, and that waiting several years before starting a project is not an option for some. Whatever your situation, our consultants can help you maximize your mortgage refinancing!

The Time It Takes to Pay Off Your Mortgage May Increase

A mortgage refinance increases the amount you have borrowed, which can have different impacts. Increasing the balance of your mortgage may increase the time it takes to pay it off, so you will have to pay it off over a longer period of time. Also, even if you consolidate your debts at a lower mortgage interest rate, your monthly payments may be higher than before. Make sure to consult experts before applying for a refinance!

When Is the Best Time for a Mortgage Refinance?

The right time to refinance your mortgage depends on your personal situation and your immediate needs! Here are some situations where refinancing could be an option:

 

1. You Want to Purchase a Second Home or a Cottage

2. You Are Thinking of Making Renovations to Your Property

3. You Want to Consolidate Payments on Your Debt

4. You Are Considering Opening an Investment Account.

5. You Want to Finance Your Retirement.

6. You Want to Start a Business

7. You Want to Cover Tuition for Your Children

Need a Mortgage Refinance?

We Take Your Ability to Pay into Account!

Consult with mortgage refinancing experts today to learn more about your options and benefits of refinancing your property. Our advisors take into account your needs and financial situation to determine the best course of action for you based on your ability to repay. You are not alone in this process, we are with you every step of the way!

Make the Best Financial Decision with Mortgage Refinancing

What Other Services Does Mortgage Refinancing Offer?

We have developed an expertise in debt consolidation and offer alternative lending services to help you achieve financial security. Don’t hesitate to contact us for private loans! 

Learn More About Property Refinancing

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Why Use Refinancing as a Source of Financing for Your Projects?

A benefit of mortgage refinancing is that it offers a significantly lower interest rate than credit cards or products like lines of credit and personal loans. Mortgages are a great way to free up capital at a low cost for different projects, or for debt consolidation

Combining different credits and debts into one mortgage, in many cases, allows an individual to reduce their payments and regain control of their debts. The interest rate on a mortgage from a mortgage refinance is often less than half the interest rate offered by credit cards.

 

How Do I Calculate a Mortgage Refinance?

Mortgage refinancing calculations are possible with Refinancement Hypothécaire’s mortgage calculators, and our mortgage brokers will be happy to meet with you and discuss your situation.

The mortgage refinancing calculation will influence your refinancing rate and will take into account several factors such as:

  • The current value of your property;
  • The balance of your current mortgage;
  • The amortization period of your mortgage.

 

Can I Refinance My Property to Invest in Real Estate?

It is possible to finance the purchase of a new property, such as a rental property, with a mortgage refinance. The money obtained by refinancing is usually at a much lower interest rate than a loan from a financial institution and reduces the borrowing cost. However, refinancing a mortgage for the purpose of investing in a rental property is a complex financial move, so make sure you consult specialists before making the move!

 

How to Refinance Your Mortgage?

There are several ways to approach a mortgage refinancing in Quebec: mortgage termination, a mortgage line of credit or, if eligible, a reverse mortgage.

Mortgage Termination

You can terminate your mortgage, regardless of the remaining years of your mortgage, with a mortgage refinance. This allows you to take out new financing at a lower variable or fixed rate to lower the cost of borrowing. However, penalties are calculated on the amount and number of years remaining on your mortgage. Therefore, it is important to talk to a mortgage broker to determine if this change will be profitable for you!

Mortgage Line of Credit

Mortgage line of credit allows you to refinance up to 65% of the value of your property, with the advantage of flexibility in repayment. Interest is calculated on the balance of your line of credit, the more you pay off your mortgage, the more the available credit increases.

Reverse Mortgage

Reverse mortgages are only available to individual homeowners who are at least 55 years old. This type of mortgage allows you to borrow up to 55% of the current value of your home. You do not have to make any payments until you move, sell the property or the mortgage expires. Consult our advisors if you are eligible for this offer!

 

What Is the Difference Between a Mortgage Renewal and a Refinance?

Mortgage renewal occurs when your mortgage contract with a financial institution comes to an end and there is a balance left to pay. You will then have to renew your mortgage, with the same financial institution or another one! This new mortgage is a contract renewal, possibly with new interest rates and terms.

A financial refinance is a loan based on the equity in your home (the current value of the property minus the mortgage that remains to be paid). Refinancing is a way to access capital for different projects, to cover major expenses or to consolidate your debts.

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