Refinancing

Get the money you need at the rate you deserve! With the high rate of unsecured debt growing at approximately 30% per annum, and disposable income growing at approximately 3%, consumers on average are spending money much faster than they are making it. For this reason, many look to the increased equity in their homes in order to increase their cash flow by consolidating their outstanding debt load. This debt consolidation approach can have a dramatic effect on your overall cost of borrowing, especially considering the interest rate of your unsecured debt versus today’s historically low mortgage rates.  Also consider the daily or monthly compounding factor of your “friendly” debt with Visa, Mastercard or your bank and you may too find that refinancing is the smart thing for you.

There are many other reasons that home owners may re-finance their homes. With the “pain in the butt” factor of moving, coupled with the expenses that come with it many are choosing to make improvements to their current home, rather than relocate.  Finishing the basement, adding a garage, or updating the kitchen and bath comes with significant expense and instead of carrying those expenses on high interest loans it can be beneficial to refinance the mortgage to pay for them.
 
There are also those who do an equity take-out for investment purposes, or to purchase another home or recreational property. The net effect of owning multiple properties is a key contributor to your over-all financial wellness. With the potential higher cost of additional mortgages, you may choose to combine your existing and new mortgages to improve your cash flow situation.  If you are considering taking this big step towards financial wellness you will be happy to know that all Axis Mortgage Planners are owners of multiple properties, we walk the walk.

While refinancing may make sense it can also come with hurdles.  Recent Government of Canada intervention has limited the ability to refinance your mortgage to a maximum of 80% of the value of your home.  If your home is worth $300 000 the maximum allowable new mortgage by way of refinance would be $240 000.  Couple that with the flat property values much of Canada has seen and you may be one of those faced with this restriction.  Calling us to help you determine your property value and your refinance needs is the first step to take!