Mortgage Refinance Tips
As a Toronto mortgage refinance expert, I deal with a lot of people looking to refinance their mortgages for a number of reasons. Whether its to cut down your monthly mortgage repayments or to have some cash from home renovations and special occasions, it can feel a bit overwhelming. Our Toronto mortgage refinance team has a few tips for you if you are looking to take the refinancing route.
Why Refinance your Mortgage is a Good Choice
If you are already locked into a mortgage and are finding it hard to make the monthly payments, refinancing can help cut those monthly payments down to something more affordable. You not only will be saving money but also lowering your interest. However, some of our clients worry that having a not so great credit score will impact their ability to gain refinancing. This is where our Toronto mortgage refinancing team can help.
Get your Financial Documents in Order
Having all of the necessary financial information when starting your application for refinancing will make it look more attractive to potential lenders. This includes having payslips, letters from employers, tax documents, and anything else that will help in supporting your application. Lenders want to see a stable job history, so having a letter from your employer that shows how long you have been working with your company is a plus. Also, if you are getting a raise or promotion, have a letter from your company that shows proof of your pay rise.
Market Property Value and Equity
Lenders will look at the value of your property when reviewing your refinance application. What they are looking for is whether you owe more on your mortgage that the actual value of the home. The value isn’t what you purchased the home at mind you. It goes by whatever the current market value is. Each lender may require a certain amount of equity before accepting your refinancing application. By speaking with our Toronto mortgage refinance team, you have access to more options than you would get by just going to the lender.
Keep Your Expectations Realistic
Refinancing your home involves several steps. The package options that are available to you are based on a number of criteria, so don’t go into this expecting the process to be easy and quick. Expecting a super low-interest rate isn’t always realistic either. Saying that our Toronto mortgage refinance team will do all they can to get you the best deal possible for your circumstances. Being realistic regarding what you are able to get will make it much easier to find a good refinance package.
Know When Refinancing Will Benefit You
Refinancing is a great option if you are looking to lower your monthly payments on any debts outside of your mortgage payments. Especially if you have high-interest debt payments like credit card debts, payday loans, personal loans, second mortgage, and even car loan payments. By trading the high-interest rates on these debts with a much lower mortgage refinance rate, all these debts can easily be rolled into your mortgage by refinancing and allowing you to save hundreds to thousand dollars a month. Providing you a positive cash flow month after month that you can be proud of.
If you are thinking of refinancing your mortgage, give our Toronto mortgage refinance team a call today!