Take Advantage of Your Property’s Value

Discover the possibilities of mortgage refinancing

Do you need capital for a major project or to cover unexpected expenses? If you own a property, whether it’s a home or a business, mortgage refinancing can provide you with a significant amount of money!

What Is Refinancing?

Refinancing a property 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 worth $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 different projects, such as renovations, buying a car or a cottage, or to cover expenses. This is a big financial decision, so be sure to consult with professionals to see if a mortgage refinance is the right solution for you. Experts at Refinancement Hypothécaire will be happy to help you!

How Much Can I Borrow When Refinancing My Home?

Depending on your current situation and the mortgage payment you already made, you can borrow up to 80% of the equity in your home. It is therefore 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.

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!

Access Capital for a Project or Expense

Refinancing your mortgage allows you to receive up to 80% of the equity in your home, which is the current value of the property minus the amount you owe 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.

Refinancement hypothécaire

Consolidate Your Debts

Debt consolidation with a mortgage refinance is a great way to consolidate all your debts into one mortgage. The capital freed up by the 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 get your debt under control. Interested in debt consolidation services? The consultants at Refinancement Hypothécaire have the expertise to help you through the process and help you find 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 charged by your financial institution when you break a mortgage contract. Refinancement Hypothécaire can help you in these steps to minimize the costs while taking advantage of the current rates!

When To Refinance Your Mortgage?

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

The Time It Takes to Pay Off Your Mortgage May Increase

Un refinancement hypothécaire augmente le montant que vous avez emprunté, ce qui peut avoir différents impacts. En effet, l’augmentation du solde de votre hypothèque risque d’augmenter le temps nécessaire pour le remboursement, vous devrez donc payer sur plus d’années. Également, même si vous consolidez vos dettes à un taux d’intérêt hypothécaire plus bas, le montant de vos paiements mensuels pourrait être plus élevé qu’auparavant. Assurez-vous de consulter des experts avant de faire une demande de refinancement!

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 may be a good option:

  • You want to buy a second home or a cottage
  • You are thinking of renovating your property
  • You want to consolidate payments on your debt
  • You’re thinking of opening an investment account
  • You want to finance your retirement
  • You want to start a business
  • You want to cover school fees for your children

Need a Mortgage Refinance?

We Take Your Ability to Repay 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, we will be with you every step of the way!

What Other Services Are Offered by Refinancement Hypothécaire?

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

Learn More About Mortgage Refinancing

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Can I Refinance 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 cost of the loan. However, a mortgage refinance for the purpose of investing in a rental property is a complex financial lever, so make sure you consult with specialists before taking action!

How Do You Refinance Your Mortgage?

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

Termination of the Mortgage

You can terminate your mortgage, regardless of the number of years remaining on 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 the loan. However, penalties are calculated on the amount and number of years remaining on your mortgage. It is therefore important to talk to a mortgage broker to calculate if this change would be profitable for you!

Mortgage Line of Credit

The mortgage line of credit allows you to refinance up to 65% of the value of your property, with the benefit 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 amount available on the line of 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 matures. 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 you have a balance remaining. You will then have to renew your mortgage, with the same financial institution or another one! This 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 obtain capital for different projects, to cover important expenses or to consolidate your debts.

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