There are several common reasons why homeowners choose refinancing as their financial solution:

 

Lower interest rates - One of the main reasons to refinance a mortgage is the opportunity to obtain lower mortgage rates. The primary benefit is to reduce your monthly obligations to creditors and to increase your cash flow. The goal is to put more money in your pockets. Even reducing your interest rate by 0.5 percent can add up to thousands of dollars in savings over the life of your mortgage.

 

Consolidating debt - If you are carrying expensive credit card debt, it might be worth considering refinancing your mortgage. By refinancing, your new mortgage pays off your outstanding debt and replaces it with more sustainable debt that offers less headaches. 

 

Tapping into your home equity - Accessing the current equity in your home is another reason to consider refinancing. If you are facing expensive home renovations, your home's equity may be a better option than using a high interest credit card.  If you have owned your home for a while and have built up equity, a Canadalend mortgage specialist can provide you with refinancing options so that you have a solution that makes sense.

 

Paying a mortgage off - If you are in a situation in which you make significantly more income than you did when you first bought your home, refinancing can be an ideal option for you. Through refinancing, you can choose a lower term to pay the mortgage off sooner.

 

 

The decision to break a current mortgage should not be taken lightly. Regardless of the benefits of lower mortgage rates, there are penalties associated with refinancing. It is important to take all closing costs and fees into consideration before making the decision to refinance. Penalties can get costly, but that does not mean that it is not worth considering.

 

Who can help me with refinancing my mortgage?

 

Mortgage specialists at Canadalend will explain the process to you to help you fully understand and decide on if it is the right time for you to refinance. Refinancing with Canadalend provides homeowners with a trusted team of professionals who will provide financial assistance to those living in the Mississauga, Oakville, Toronto, Vaughan, Scarborough and nearby areas. Contact us to speak with a mortgage specialist today.