I want to Refinance my Mortgage
Mortgage Managers has built its reputation by making sure that you get the right mortgage solution. We'll help you choose the right mortgage tailored to your needs, set out the costs of mortgage refinancing, and show you how much money you’ll save. Again, we want to ensure you there is No Cost for our services.
Today's Mortgage Rules
There have been a number of changes to the mortgage rules over the past few years. The current rules only allow home owners to refinance up to 80% of the current value of the home. Unfortunately, that means you are unable to access 20% of the equity in your home. However, there is one notable exception to that rule when the home owners are getting divorced and one spouse/partner is keeping the home and buying out their spouse/partner. You can find more detail on this program on our Spousal Buyout Program page.
How Much Can You Save?
Our Interest Savings Calculator will help you decide if refinancing makes sense for you.
Popular Reasons for Refinancing include:
- Getting a better deal – if the current mortgage is no longer suitable and there are “better deals” available
- Home renovations – refinancing your mortgage to cover renovation costs
- Rebuilding – finance to cover the initial costs of building a new home
- Consolidating debts – refinancing to consolidate personal loans, car loans and credit card debts into your mortgage to take advantage of the lower interest rate; and
- Changing lenders – if you are not satisfied with your current lender
Getting a Better Deal
To get a better deal, you could either Refinance or you could Switch (or Transfer) your mortgage. Refinancing would typically include additional cash on top of your current mortgage balance to cover penalties, legal fees, debt consolidation, home renos, etc. However, if you don't need any additional cash, you could simply Switch the remaining balance of your mortgage to a new lender at a lower interest rate. When you Switch lenders, the new lender will usually cover any legal fees (and may allow up to $1,000 new cash) but will not cover any penalties to break your current mortgage. Your Mortgage Managers broker will be able to help you find the best solution for your needs.
Maybe a 2nd Mortgage works better?
If you have a low rate on your current mortgage, it would be smart to hang onto that low rate and then do a 2nd mortgage for the funds you need. That would also avoid having to pay any penalty to break your mortgage early. We'll help you explore all your options.
Refinance + Renovations:
If you would like to refinance your mortgage to do some home improvement renovations to your home, often, if the renovations are substantial, they will increase the value of your home. Then we can finance up to 80% of the improved value of your home!
When applying for a mortgage, your Mortgage Managers broker will need to obtain some documentation from you in order to complete your credit application accurately. Please download a copy our our Required Document Checklist from our Library.
Borrowing on Home Equity Guide
The Financial Consumer Agency of Canada has prepared a guide to help you make an informed decision. You can download the Borrowing On Home Equity guide from our Library.
Paying Off Your Mortgage Faster
There are a number of ways that you can pay off your mortgage faster. Your Mortgage Managers broker will discuss these Pre-Payment Privleges with you when you are signing your mortgage approval documents. However, if you would like to do a little reading now, you can click this link to download a Free copy of the Financial Consumer Agency of Canada's Paying Off Your Mortgage Faster Guide from our Library.