Let’s face it, 2020 was a tough year. And to top it off, all of Ontario was in lockdown over the holidays and into the new year to help stop the spread of COVID-19. So, if you extended your budget, you’re not alone. It’s especially easy to get caught up in the holiday spirit and become extra generous when we can’t see our loved ones in person and celebrate the way we’ve grown accustomed.
But, now, with the high cost of holiday gift-buying in your rearview mirror, there’s no time like the present to take charge of your finances and begin your year on the right foot.
Fresh start to the new year
Refinancing your mortgage and freeing up some money to pay off unsecured high-interest debt on your credit cards, line of credit and/or loan, can be a very liberating move.
You’ll find that taking equity out of your home to pay off debt will also keep more money in your bank account each month – funds that would otherwise be put towards debt payments and interest.
And since interest rates are near historic lows, securing a lower rate now can save you a lot of money – possibly thousands of dollars per year.
There are penalties for paying your mortgage out prior to renewal, but these can often be offset by the money you save by not having to pay debts every month. I can review your specific situation to see if a refinance is right for you.
By refinancing you’ll also extend the time it’ll take to pay off your mortgage, but there are many ways to pay down your mortgage sooner to save you thousands of dollars in interest. I can help you build a plan.
With access to more money, you’ll not only be better able to manage your current debt, but you can also think ahead by taking out equity to complete some home renovations or even invest in your children’s education.
By refinancing now and paying off your debt, you can put yourself and your family in a better financial position for 2021 and beyond.
Have questions about refinancing your mortgage to help ease holiday spending before your bills come in? Answers are a call or email away.