Refinances, Switches or Transfers

Refinancing means to increase the size of the mortgage or renegotiate it in some fashion.

More than 60% of borroweres end up breaking their 5 year term early.

When is it advantageous for you to refinance your mortgage? Here’s some examples:

• You want to access home equity (i.e. for renovations, vacation, unexpected expenses)

• Your credit score has improved or your income has increased, possibly giving you access to better rates

• Your life has changed, and a refinance would better suit your new situation

• You want to add or remove someone from the mortgage policy.

However, there are costs to breaking your mortgage contract if it’s not the end of your term, known as prepayment penalties. I can help you find out what rates are available to determine whether that cost is ultimately worth it.

As a borrower, you can also switch to another lender that offers you a better mortgage. You keep the mortgage amount and amortization, but move to a different lender.

If you are moving to a new home, you may be able to port your mortgage, allowing you to take your current mortgage terms (including your existing interest rate and remaining term) and move them to the new home. This is highly beneficial if you have a favourable rate.