Is it a good time to refinance your mortgage in Mississauga and GTA?
What exactly is mortgage refinancing?
Mortgage refinancing is when you break your current mortgage in order to get another one – usually at a lower interest rate. When you refinance, you have the option to borrow some of the equity that is in your home and add that to your total mortgage. That means you can use this strategy to consolidate higher interest debt or to access cash for something that you need.
When mortgage refinancing is done for the purpose of debt consolidation, the savings in interest is often enough to lower your overall monthly debt payments and to help you pay off your debt much sooner.
Are there any disadvantages to mortgage refinancing?
The main drawback to mortgage refinancing is that because you are breaking your first mortgage, there is going to be a financial penalty. The further you are away from your mortgage renewal date, the higher that penalty is likely to be.
That’s why it is always recommended that you consult with a professional mortgage broker first. A good broker can help you determine whether the amount of savings you will realize by mortgage refinancing will offset the financial penalty that you will have to pay.
Is now a good time to get a mortgage refinance?
Currently, interest rates from the Bank of Canada are very low so it may indeed be a good time for you to refinance your mortgage. And if you need help financially, refinancing can help you access up to 80% of the value of your home equity.
Keep in mind however, that if you have recently renewed your mortgage, refinancing may not be your best option. Another strategy such as a second mortgage may make more sense for you if that is the case.
Contact Sun Micro Financial today
If you would like to learn more about how you can save money or access money from your home equity through mortgage refinancing in Mississauga & across the GTA, we would love to help. Contact Sun Micro today to speak to one of our agents.