If you’re already a homeowner, mortgage refinancing is an attractive solution that allows you to take out a new mortgage on your property and obtain a loan of up to 80% of its market value. If you already own a home, refinancing is an interesting option that allows you to source new mortgage on your property up to a maximum of 80% of its market value. The mortgage refinancing experts at Équipe Distinction are here to help you in your search.
Refinancing your mortgage means renegotiating your current mortgage. It’s a transaction between you, the borrower, and a financial institution capable of taking out a new mortgage contract on your property. With this option, you can leverage the equity in your home to increase the mortgage amount or consolidate your debts, among other things.
Mortgage refinancing follows the same conditions as conventional mortgage financing. After analyzing your borrowing capacity and checking your credit rating, your financial institution offers you financing at an interest rate that may vary according to market conditions.
We offer a variety of mortgage refinancing products, including fixed-rate loans, variable-rate loans and home equity lines of credit. We work with several banks and financial institutions to offer you the best options in terms of costs, payments and repayment terms. Whether you’re looking to reduce your monthly payments, finance renovations, or consolidate debt, we have the resources and tools to help you achieve your financial goals.
Given the significant amounts of money involved, you’ll understand that mortgage refinancing isn’t an option you can take lightly. In other words, it makes sense if, and only if, you need to free up considerable funds. Customers who call on our services generally request refinancing in one of the following situations: The list of projects requiring large sums of money is almost limitless. Starting a business, taking a long trip, taking early retirement, changing careers or putting a child through college, for example, are just some of the situations that may require mortgage refinancing. As you know, major repairs (e.g., replacing the roof) and large-scale renovations (e.g., adding a floor) to a home are expensive! Even if you save for several months, the money you accumulate won’t be enough to pay for labor and materials. Mortgage refinancing is a practical and justified solution to these major expenses. When you’re considering buying a new property, whether it’s a second home, an income property or a vacation property, the major challenge is often raising the necessary down payment. Mortgage refinancing can be a sensible way of freeing up substantial funds for this purpose: it is necessary, however, for the equity in your property to be at least 20%. Do you have a business project in mind, or would you like to take advantage of an attractive investment opportunity? Mortgage refinancing gives you access to liquidity that you can use quickly. But be careful not to act on impulse. Borrowing to finance an investment is not without risk, so seek professional advice to avoid regretting your over-enthusiasm! Have you accumulated a number of debts (e.g. car, credit cards) that are preventing you from getting a good night’s sleep? Refinancing lets you merge them into a single contract, with a single monthly payment, and very often at a lower interest rate: the mortgage rate is often lower than that of credit cards and personal loans. There are two main advantages to this approach: Mortgage refinancing follows the same rules as a traditional mortgage, with a few exceptions. Here are the steps : If all conditions are met, refinancing entitles you to a loan of up to 80% of the property’s market value. The financial institution granting the loan also deducts the balance of the first mortgage. For example, if you own a home valued at $400,000 and your current mortgage balance is $150,000, the maximum amount of the new loan is $170,000: ($400,000 x 80%) – $150,000. To submit your refinancing request, make an appointment with one of our brokers. He or she will explain your options (usually two or three scenarios), then take care of presenting your file to the lenders you’ve chosen together. Compare refinancing proposals obtained from lenders (banks and other financial institutions). The best contract is obviously the one that guarantees an advantageous rate and favorable credit terms. As with a conventional mortgage, mortgage refinancing depends on your borrowing profile and creditworthiness. For this reason, a mortgage lender will analyze a number of data concerning you, including the following: Are you employed or self-employed? How much money do you earn per week, month, or year? This information reflects your ability to generate income and is crucial for determining your borrowing capacity and mortgage payments. How much do you owe? Do you pay your monthly installments on time? The amount and nature of your mortgage debts and other obligations indicate whether you’re a good or bad manager of household debt. Have you drawn up a detailed budget to finance your project? Lenders have a marked preference for realistic customers, i.e., those who know how to qualify and quantify their needs. A good faith estimate helps in presenting your requirements clearly and mght help your obtain better mortgage terms. Is your credit history good or bad? Your credit report and credit score tell lenders what kind of borrower you are, so pay attention to your credit rating and ensure your credit reports are accurate and up-to-date. A well-located, well-maintained property offers more collateral, increasing the loan-to-value ratio and therefore offering more security for the financial institution when it comes to mortgage lending. Not happy with refinancing requirements? No problem! There’s a more flexible borrowing solution that might interest you: the home equity line of credit. This formula gives you access to an amount equivalent to 65% of the market value of your property. And unlike an ordinary mortgage, a home equity line of credit gives you great freedom in allocating funds and repaying principal and interest. In this case, the lender sets no deadline or amortization schedule. There are no mortgage penalties for full repayment. What’s more, it remains available and usable at any time, provided you retain ownership of the mortgaged property. It has to be said, however, that a home equity line of credit requires a little more discipline. If you abuse it, you could easily end up over-indebted. It’s best to use it sparingly, or as recommended by an expert! When all is said and done, whether you choose a home equity line of credit or a standard mortgage, you stand to benefit from the expertise of a mortgage advisor or broker (like the members of the Distinction team) who will advise and support you every step of the way in financing your project. Yes, at Équipe Distinction, we offer mortgage refinancing solutions even for those with bad credit. Many factors can affect your credit rating, such as inconsistent income, high debts, or late payments. However, these challenges don’t prevent you from refinancing. We work with a variety of lenders, including private lenders, to find options tailored to your situation, which will help you consolidate your debts and improve your credit rating. In Canada, you can choose from several mortgage refinancing options, including fixed-rate mortgages, variable-rate mortgages and home equity lines of credit. Each of these options offers different advantages in terms of interest rate, repayment term and flexibility. Talk to a mortgage broker to determine the best option for your financial situation and plans. In Canada, you can choose from several mortgage refinancing options, including fixed-rate mortgages, variable-rate mortgages, and home equity lines of credit. Each of these options offers different advantages in terms of interest rate, repayment term, and flexibility. Talk to a mortgage broker to determine the best option for your financial situation and plans. Mortgage refinancing involves various costs, such as property appraisal fees, legal fees, and any prepayment penalties on your current mortgage. It’s important to take these costs into account when assessing whether refinancing is a good option for you. Use a mortgage calculator to estimate these costs and effectively plan your refinancing. Mortgage refinancing involves various costs, such as property appraisal fees, legal fees, and any prepayment penalties on your current mortgage. It’s important to take these borrowing costs into account when assessing whether refinancing is a good option for you. Use a mortgage refinance calculator to estimate these costs and effectively plan your refinancing. The interest rate is a key factor in the total cost of your mortgage refinancing. Rates can be fixed or variable, and influence the amount of your monthly payments. Comparing rates offered by different financial institutions can help you find the best rate for your refinancing, reducing your interest costs over the life of your loan. The mortgage interest rate is a key factor in the total cost of your mortgage refinancing. Rates can be fixed or variable, and influence the amount of your monthly mortgage payments. Comparing current mortgage rates offered by different financial institutions can help you find the best rate for your refinancing, reducing your interest costs over the life of your loan. Mortgage refinancing can give you access to funds for a variety of personal projects, such as home renovations, the purchase of a second home, or debt consolidation. By using the equity in your home, you can obtain a new loan with more favorable terms, making it easier to realize your projects while managing your finances efficiently. Mortgage refinancing can give you access to funds for a variety of personal projects, such as home renovations, the purchase of a second home, or debt consolidation. By using the equity in your home, you can obtain a new loan with more favorable terms, making it easier to realize your projects while managing your finances efficiently. Consider the potential deductions on mortgage interest to optimize your finances. Mortgage refinancing
mortgage refinancing
What is a mortgage refinance?
Talk to mortgage experts
Why and when should you refinance?
For a personal project
For renovations
For a down payment
To make an investment
To consolidate your debts
What is the refinancing process?
Calculate home equity
Submit a refinancing request
What factors are taken into account when refinancing?
The mortgage line of credit
An alternative: the home equity line of credit
Do you offer mortgage refinancing for bad credit?
What refinancing options are available?
What are the costs associated with mortgage refinancing?
What impact does the interest rate have when you refinance your mortgage?
What are the benefits of refinancing for your personal projects?
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