Refinancing...is it for you?

Canadians today face many reasons to refinance their mortgage. For example, you may have been working at improving your credit score and now qualify for a new mortgage with a better discount, or you may want to stabilize your payments by changing from a variable rate mortgage to a fixed-rate. Refinancing is also a good option to pull out equity for consolidating debt, home improvements, investments, college expenses, and more.

Refinancing isn't necessarily a bad thing or term

There are many things that play a role in whether or not refinancing is a good move.  The first thing is to determine what your overall goal is by refinancing.  It can answer many questions for you including providing you with these benefits.  Why do you want to refinance?

• Getting a rate that reduces your monthly payment while being low enough to offset the costs of refinancing is one common reason to refinance
• Paying down higher interest debts like credit cards or loans or lines of credit .
• Having your monthly payment reduce to help you pay off your mortgage quicker as your not incurring more debt but able to now focus on just paying the mortgage off
• Buying a rental property or 2nd home(cottage).
• Increase your quality of life now, maybe buying a boat or trailer for those family outings.
• Doing some investments and get a higher rate of return on your investments and borrowing the money at a lower rate for the mortgage.
• consolidate their high-interest debt to reduce their overall interest rate and free up hundreds of dollars in cash flow every month.
• Doing some much-needed renovations to your home using the existing equity to increase the value of your home it's a win-win.

Here is something most people don't know when considering when doing a refinance all costs can be included in the mortgage including lawyer fees and penalties. 

When done correctly, a refinance can save families money on long-term interest.

If you are curious to know how much can save if you refinance your mortgage this calculator will help you find out!.