Refinancing & Debt Management

There are a number of different reasons why someone may choose to refinance their mortgage. Maybe they want to take advantage of lower interest rates, put the money towards investments, buy a second property, or start a business. Whatever the reason, borrowing against your home is an excellent way to access money as mortgage interest rates are significantly lower than other forms of credit, such as credit cards, personal loans, or unsecured lines of credit.  

While interest rates in Canada are currently at their lowest levels in decades, that doesn’t mean they’ll stay there. If you have been considering refinancing your property, now may be the right time to do so. By refinancing your mortgage, you may be able to: 

• Lower your monthly payment 
• Reduce your amortization and pay off your mortgage years earlier 
• Save thousands in interest over the life of your loan 
• Use a portion of your new mortgage to consolidate high-interest debts 
• Start a business, renovate your home, pay for your children’s education…it’s your money, you decide! 
   

Access the cash you need 

By refinancing your mortgage, you can quickly access needed cash by tapping into your home’s equity. The equity of your home is derived by subtracting its current value versus the remaining mortgage on it. So if your home is valued at $500,000 and you have $250,000 remaining on your mortgage, then you currently have $250,000 in home equity.  

You can access your home’s equity without selling the property by refinancing your mortgage. By doing so, you can gain access to up to 80 per cent of the value of your home minus the amount you owe on your mortgage. So if your home is valued at $500,000 and you have $250,000 remaining on your mortgage, you can access $150,000 worth of equity which will leave you with a new mortgage balance of $400,000.  

Some of the main reasons people decide to take out the equity on their home include:  

• Financing home renovations 
• Financing post-secondary education for their children 
• Using the money to pay down high-interest debt 
• Using the money to invest 

 If you would like to talk more about your refinancing options, contact us today and we’ll book you in for a free consultation to go over everything.  
 

Lower your monthly payment 

Refinancing your mortgage could mean a much lower monthly mortgage payment for you. By working with our industry connections, we can possibly get you a much lower interest rate given current circumstances over the same amortization period. Doing so could save you thousands of dollars over the life of your mortgage.
  

Pay off your mortgage years earlier 

If you refinance your mortgage at a lower interest rate you’ll not only save a lot of money, you’ll be able to pay off your mortgage years earlier without a significant increase in monthly payments. For more information on how True Mortgage can help you get debt free years ahead of schedule, contact us today.  

Consolidate your high-interest debt 

Another main advantage of refinancing your mortgage is the ability to consolidate all your high-interest debt into one easy monthly payment. Instead of having multiple lenders to pay, you’ll simply have one mortgage payment to make.
 

The True Mortgage process