Mortgage Refinancing
Access up to 80% of your home’s market value to carry out your projects.
Mortgage Refinancing
For mortgage refinancing in Montreal, on the South Shore, or the North Shore, my experience will help you choose the best solution to borrow against the equity in your property.
Mortgage refinancing means borrowing again the principal you’ve already repaid on your mortgage. It’s a cost-effective strategy that allows you to use your home’s value to fund renovations or invest, for example.
It’s best to have a good credit score to qualify for mortgage refinancing, and you generally need to have repaid at least 20% of your home’s market value. However, if you don’t meet the bank’s criteria, there are alternative solutions available. For more information on mortgage refinancing, feel free to contact me.
Mortgage refinancing can also be a good option for consolidating debts such as credit cards, lines of credit, or personal loans. It can also be used to finance renovations, purchase an income property, make other investments, pay for your children’s education, or even take a well-deserved vacation.
- Generally lower interest rates;
- All your creditors are paid, and you only have one payment to make;
- By meeting your payment commitments, you will improve your credit score;
- Monthly payments are usually lower.
Consult your mortgage broker to create a credit plan and evaluate your ability to consolidate your debts. This could significantly reduce your payments and give your family a fresh financial start.
Refinancing Your Home After a Separation
With a separation agreement, it’s possible to refinance up to 95% of your property’s market value. To do this, you need to obtain an amicable agreement from a mediator, detailing the debts you share and the share owed to the person leaving the home following the separation. Buying the home also means repaying the other co-owner’s share.
By refinancing your home, you will be able to:
- Keep your home;
- Pay your ex-partner their share;
- Pay off joint debts.
This allows you to avoid having to sell your property.
Mortgage Penalty
Separation, job loss, relocation… Many situations may require you to pay off your mortgage before the end of the term. Unfortunately, financial institutions will charge a penalty (also called prepayment fee or indemnity), which can reach several thousand dollars.
How the Penalty is Calculated:
If you break your mortgage contract one year before its maturity, and you still owe $120,000, your financial institution will calculate your penalty using one of the following two methods and charge you the higher amount:
- The equivalent of 3 months’ interest (this is usually the method used if you have a variable-rate mortgage);
- The interest rate differential (IRD), which is the difference between the rate you signed for and the rate available at the time you break the contract, applied to the remaining term (or any other rate specified in your contract). Generally, this calculation method is often the most expensive.
Contact Me
For a mortgage pre-approval, renewal, or refinancing, contact me. We can schedule a phone meeting. You can also fill out the online application form to get a quick response!