Refinance
Home – Refinance 
When it comes to mortgage refinancing, there are a lot of things to consider. Should you refinance? How much can you save? What are the risks? Refinancing your mortgage can save you money in the long run, but it’s not always the right decision for everyone. Make sure to allot a bit of your time talking to different mortgage lenders and comparing offers before making a final decision. Or, you can simply talk to us. Winnipeg Mortgages is a leading mortgage lender in Winnipeg, with years of experience and a team of mortgage experts. We’re always up-to-date with the latest mortgage rates, so you can be sure you’re getting the best deal for your unique situation. Apply online or call us today to schedule a free consultation.
What is Mortgage Refinancing
Mortgage refinancing is when you restructure your home loan by paying off your current mortgage balance and replacing it with a new mortgage term. Mortgage payments, mortgage type, and interest rate are the factors you can change when doing a mortgage refinance. Mortgage refinancing is a great way to save money on your monthly mortgage payments, reduce the total amount of interest you pay on your loan, or switch from an adjustable-rate mortgage to a fixed-rate mortgage. Before you decide to refinance your mortgage, make sure you understand all of the costs involved and compare offers from multiple lenders to get the best deal.
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Reasons Why You Should
Refinance Your Mortgage
A new mortgage contract and adjusted interest rates are not the only benefits of mortgage refinance. Let’s go through other reasons why you should restructure your home loan.
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Accessing
Accessing
home equity
By refinancing your mortgage and taking out a larger loan, you can access the equity in your home. Equity is the portion of your home’s value that you own outright, and it can be used for a variety of purposes, such as home improvements, debt consolidation, or investing. It is highly possible to access up to 80% of your home’s value through a refinanced mortgage. Ways to access home equity are through breaking your existing mortgage, taking on a home equity line of credit, or you can extend your mortgage with your current lender.
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Lower interest rate
Get a
lower interest rate
By refinancing, mortgage rates may drop, and this could lead to a lower monthly payment depending on your outstanding mortgage and pre-payment penalty. If you have a variable rate mortgage, then expect to pay a penalty if you want to break your contract early. For fixed mortgage rate products, IRD or the interest rate differential is charged if you break your mortgage early. Some lenders waive penalties if you remain with the same lender.
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The Pros and Cons
The Pros and Cons
of Mortgage Loan Refinancing
Mortgage refinance is a major financial decision, and there are both pros and cons to consider before you decide to restructure your home loan. While having an advantage, the downside of refinancing also exists. It is essential to understand both the good and bad before you make a decision.
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Pros
Pros of
Mortgage Refinance
- Can consolidate higher-interest debt to save money
- Access home equity
- Get a lower interest rate
- Allows swap from variable to a fixed rate
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Cons
Cons of
Mortgage Refinance
- Might have to pay a penalty for breaking your contract early
- Consolidating debt removes the incentive to pay it faster
- More debt due to a larger loan
- Switching to a variable rate may increase your monthly payments
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How to Finance
How to Finance
We understand that not everyone is familiar with the mortgage process, so we’ve put together a step-by-step guide on how to finance your existing mortgage loan
1. Break your
existing mortgage contract early
One way of accessing your home equity is by breaking your current mortgage contract early. However, you will have to pay a penalty for doing this, which is typically three months’ interest or the interest rate differential (IRD), whichever is greater.
2. Take out a home
equity line of credit (HELOC)
A HELOC or the home equity line of credit will give you access to your home equity at your own discretion. You can use as much or as little of it as you want and only pay interest on the portion that you’ve used.
3. Blend your old
mortgage with a new one
Extending your current mortgage and blending it with a new one is another way to access home equity without having to break your contract early. This means, your mortgage term will be extended, but you won’t have to pay the IRD penalty.
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Associated
Associated Fees and Costs
When you refinance your mortgage, there are a few fees that you’ll need to pay. These include:
- Home appraisal fee: charged by the lender to assess the current market value of your home
- Legal fees: charged by your lawyer or notary for their services in preparing and registering the new mortgage
- Mortgage registration fee: charged by the province to register the new mortgage
- Discharge fee: charged by your current lender to discharge the old mortgage
Discharge fee: charged by your current lender to discharge the old mortgage
Other refinancing fees might be chargeable depending on your current mortgage lender, so be sure to ask about these in advance. You can talk with our specialists here at Winnipeg Mortgages and we will help you assess what fees you may be subject to.
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Requirements You
Need to Refinance Your Mortgage
Need to Refinance Your Mortgage Mortgage refinance requires a bit more paperwork than your original mortgage application because you’re essentially applying for a new home loan. When you refinance, you’ll need to provide:
- Your current mortgage statement
- Proof of income (T4s, pay stubs, etc.)
- Asset statements ( bank statements, investment statements, etc.)
- Proof of home insurance
- Credit information
Call us to learn what more you need so we can help you get started.
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Alternative
Alternative
Mortgages for Seniors
Mortgage refinance rates might not be suitable for everyone. If you’re a senior citizen, you might want to explore some alternative mortgages that are more flexible and have lower interest rates. This is where our Reverse Mortgage products come in.
Reverse mortgages are unique home equity loans available to seniors aged 62 and over. With a reverse mortgage, you can use your home equity to supplement your income in retirement, pay off debts, or make home renovations. You can receive the money from a reverse mortgage as a lump sum, a line of credit, or monthly payments. And the best part is, you don’t have to make any repayments until the loan comes due, which is usually when you sell your home or pass away.
Reverse mortgages are unique home equity loans available to seniors aged 62 and over. With a reverse mortgage, you can use your home equity to supplement your income in retirement, pay off debts, or make home renovations. You can receive the money from a reverse mortgage as a lump sum, a line of credit, or monthly payments. And the best part is, you don’t have to make any repayments until the loan comes due, which is usually when you sell your home or pass away. However, be careful with mortgage lenders that offer this product as it might not always be in your best interest. Scammers take advantage of seniors by offering them reverse mortgages with high fees and unrealistic terms. Be sure to stick with a trusted mortgage lender such as Winnipeg Mortgages.