Refinance

Refinancing your mortgage can be the knight-in-shining armor you needed.

There are often costs and hefty penalties involved with refinancing a mortgage, connecting with a licensed mortgage broker (such as myself!) is a valuable way to properly explore your mortgage options.

refinance mortgage

Refinancing Overview

As your personal life and the economy shift, you may find yourself falling out of love with your mortgage or in search of refreshed mortgage opportunities.

Refinancing your mortgage can be a welcomed opportunity to match your mortgage more accurately to your current lifestyle and goals.

Refinancing will often involve switching what type of rate you have (variable rate or fixed rate), what length of amortization you have, or adjusting for added pre-payment privileges.

So what the heck does it mean to refinance your mortgage? Let’s get into it!

The A-B-C's of Refinancing a Mortgage

Refinancing your mortgage can feel like a frightening thought, but with proper care and consideration, you can rest assured that refinancing will only be in the cards if it makes financial sense.

When refinancing a mortgage the title to the property remains unchanged; what changes is how the balance of the mortgage is paid down.

Common reasons for refinancing a mortgage are:

  • Your mortgage term is set to mature but you don't have funds for the full payout
  • Significantly better interest rates are available and you'd like to take advantage of them
  • You'd like to consolidate debts into a lower, interest rate
  • A renovation which could increase your home equity requires additional funds
  • Extending your amortization would benefit you in the short time by freeing up personal monthly funds
  • You've encountered a big loss in income and would benefit from having lower monthly morgage payments

Costs and Considerations Over Refinancing A Mortgage

Refinancing your mortgage can be a great opportunity, but it can also come at a cost.

Working with a licensed mortgage broker is a fantastic way to properly assess your mortgage options and to determine whether refinancing is a desirable fit.

A licensed mortgage broker (such as myself!) will factors in costs and penalties to help you make well-informed decisions regarding refinancing your mortgage.

Common refinancing costs are:

  • Legal or broker fees
  • Appraisal or survey costs
  • Penalties for breaking your mortgage (as outlined in your mortgage agreement, such as pre-payment penalties)
  • Costs for switching lenders (if that's the chosen course of action)
  • Fees for registering the mortgage
Each borrower planning to refinance will be in a situation unique to them – no two lending options are the same.

If your family member refinanced their mortgage and is extremely happy with the outcome, it doesn’t mean that you'll also be just as happy with the outcome of refinancing your own mortage.

A proper assessment needs to be completed on your current lender agreement and personal state-of-affairs to determine whether refinancing is a recommended option.

As a licensed mortgage broker, I've helped many valuable clients refinance their mortgages, and guided many clients towards other mortgage solutions which were a better fit!

Is There A Golden Rule Of Thumb For Deciding Whether To Refinance?

Refinancing is a complex decision and it adds different risks and benefits for each borrower.

Connecting with a licensed mortgage broker is a valuable way to mitigate risks and ensure that refinancing is right for you.

After factoring in costs and pre-payment penalties associated with refinancing, you may end up saving money or it may end up costing you money.

If I determine that refinancing could jump you into a significantly better financial situation with your mortgage, it's definitely a mortgage solution we'll take a closer look at and consider.

Increase Your Chances Of An Optimal Mortgage Refinancing Deal

Refinancing options are influenced by the economy, deals the banks/lenders have available, and your personal borrowing situation.

With that being said, some factors for optimal refinancing are within your control:

Maintain a GOOD or EXCELLENT credit score


Pay your mortgage payments (and other bills) on time, ‘live within your means’, have a low debt-to-income ratio etc.

Work with a licensed mortgage broker


licensed mortgage brokers have access to countless lenders and mortgage programs, increasing your chances of a desirable refinancing solution

Refinance at an optimal time


If you're refinancing your mortgage by choice (and not because you need to), it may be wise to wait until your renewal date instead

Understand that a lower interest rate doesn’t mean you will save money


This is a bit of a complex concept because you would think that a lower interest rate than what you currently hold MUST save you money, but depending on the term of the contract and the amortization period, it may end up hurting your pocket in the long run.

"Is Refinancing A Simple Process?"

Refinancing can be a very easy process when working with an experienced licensed mortgage broker (such as myself)!

As a licensed mortgage broker, I'll conduct the tough leg work for you.

I first work with you to assess your mortgage goals and then match them with a valuable mortgage solution. After our discussion, I'll request appropriate documentation from you. From here, you can sit back and relax while I negotiate mortgage deals with lenders on your behalf to secure a fantastic mortgage deal with your name all over it.

The Next Steps For Refinancing Your Mortgage

Reach out to myself Chantelle Benzies (licensed mortgage broker) to discuss whether refinancing your mortgage is in your best interest.

I guarantee that I will put you AND your best interests first; I don’t work for the banks, I work for my clients and I want you to feel accomplished and happy with whatever mortgage avenue we decide on.

Depending on your unique situation, refinancing may not be in the cards. If refinancing isn't an optimal option, I have access to endless mortgage solutions which may suite your goals better.

Give me a no-risk call to discuss whether refinancing your mortgage is right for YOU!

***other conditions may apply to anything written in this article; the information provided on this page should NOT be implicitly relied upon, and may not be fully up to date. Contact us for the most current information***

Let's Connect!

We'd love to learn about your lifestyle and goals to fit you with a unique mortgage solution!