Refinancing Mortgage Canada 2023

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Refinancing a Mortgage in Canada 2023: Step-by-Step Guide

Refinance Mortgage Meaning: What is Refinancing a Mortgage?

What does refinancing a mortgage mean?

Mortgage refinance explained: Refinancing your mortgage is paying off your existing mortgage and replacing it with a new mortgage to access the equity in your home in Canada. People usually refinance their mortgage in Canada to lower other borrowing costs (such as debt) by taking advantage of a lower interest rate. Refinancing can help you consolidate debt or pay for other large expenses like home renovations, high-interest credit card debts, education, and more.

Your financial situation, the state of the market, and even your home’s value can change between the time of your initial mortgage agreement and now. Lower interest payments are one of the biggest reasons for refinancing your mortgage in Canada so that more money goes towards paying off the principal of your mortgage.

Whether you are refinancing a mortgage in Toronto or the rest of Ontario, Arash Sef will help you get the best rates.

Refinancing a Mortgage in Canada: Reasons, Methods & Costs

Refinancing can be a great solution for accessing the equity in your home when you need to free up cash. Refinancing your mortgage is a great way to save money and potentially increase the value of your home. This article will show you how to get started with refinancing, including what fees are involved, who is eligible to refinance, and how long it will take.

We can review your current mortgage to determine if a refinance makes sense for you, since breaking your mortgage early will result in a penalty. There’s no charge or obligation for a mortgage review, so it’s worthwhile to weigh your options. If you discover that the cost to break your mortgage is too high, then you can wait until closer to your mortgage renewal date.

There are times, however, when it makes sense to refinance right away. Life happens. And sometimes debt can get out of control. Refinancing your mortgage and freeing up money to pay off unsecured high-interest debt on your credit cards, lines of credit or loans can be a game-changer for your financial future.

Our refinance program allows homeowners to access the equity in the home – up to 80% of your property value – while also lowering the interest rate.

Renovating and upgrading your home will always result in your property value appreciating!

Not sure if it’s a good time to refinance?

Give us a call so we can learn the details of your unique situation and determine if refinancing your mortgage makes sense.

Don’t worry about your credit! We can secure approvals for homeowners with good or bad credit.

Refinance Mortgage Guide: How to Refinance Your Mortgage in Canada

Homeowners have been refinancing their mortgages in Canada more than ever before. A mortgage refinance lets you renegotiate the terms of your mortgage to take advantage of low-interest rates for mortgages that are being offered by other banks and lenders. It also enables you to get a line of credit on your property.

Refinancing mortgages have become extremely common for homeowners in Canada in recent years. This is due to values rising and homeowners being smart by leveraging their equity in order to cover expenses at record low-interest rates in Canada.

There are many reasons why a homeowner would want to refinance their mortgage. 21% of homeowners have variable mortgage rates in Canada, and it’s one of the main reasons for the popularity of refinanced mortgages, as the popularity of fixed mortgage rates is declining.
Refinancing your mortgage isn’t a complex process. Arash Sef has put together the definitive guide on mortgage refinancing in Canada, for as many different scenarios as we could think of, to help you with the best mortgage refinance options in Canada.

Arash Sef can help take care of all of this for you. Refinancing your mortgage in Canada is a great way to save money and potentially increase the value of your home. If you’ve been thinking about refinancing your mortgage, now is a great time to do it. Interest rates are still low and the process can be quick and easy with a little preparation. If you have any questions about whether refinancing is right for you or need help finding the right lender, contact Arash Sef today to get started today.

Your Complete Guide To Mortgage Refinancing in Canada

Should I refinance my mortgage in Canada? Prior to considering a mortgage refinance options in Canada, it is important to understand the main reasons for refinancing mortgage loans in Canada. A mortgage refinance allows you to borrow from the equity in your home, lower your interest rate, and change your mortgage before your term is over. A home equity line of credit (HELOC) is an alternative to refinancing in Canada.

Reasons to Refinance Your Mortgage

Endless amount of reasons are available. Live happen all to often and people need access to funds. Borrowering from your equity as a mortgage is always going be the most cost efficient form of borrowing. Refinancing your mortgage to lowe the rate, and access the equity built up in your home to consolidate other high interest debts, or even renovate your property, are the main reasons people refinance their current mortgage.

Getting a Better Interest Rate

Getting a better mortgage rate in Canada is the primary reason for looking into refinancing mortgages in Canada. Many people refinance when the rates being offered by other financial institutions and lenders are lower than their current mortgage rate that was agreed upon when interest rates being offer were higher. This would be an ideal time to refinance and save interest on paying the same loan amount and also a great time to borrower additional funds as needed.

Lower Monthly Mortgage Payments

If rates have dropped since you got your original mortgage, you may be able to refinance into a loan with a lower rate. It can also allow you to secure lower monthly payments. This could be due to securing a lower interest rate, or you could lengthen the amortization of your mortgage, which could result in a lower monthly payment as well. Additionally, if rates haven’t dropped significantly but you have had or anticipate a decrease in income, you may be able to lengthen your loan term to pay off your loan more security. Refinancing can save you money on interest, reduce your monthly payments, free up some cash and leave you more financially secure.

Stabilize Payments

Under this current economic situation with rising mortgage rates in Canada, transforming a variable rate mortgage into a fixed rate is a very popular reason for refinancing a mortgage in Canada. Having a more steady and stable payment is another common reason for someone to seek out a mortgage refinance.

Access Home Equity With Cash-out Refinance

You need cash, but you don’t want to drain your savings account or retirement funds. Building credit and getting out of debt is a popular reasons for cash-out refinancing in Canada. One type of cash-out refinance in Canada allows you to borrow against the equity in your home, transforming your home equity into a line of credit. 
This is also a popular choice for consolidating debts by refinancing. You can borrow against the equity in your home to pay off other debts like credit cards, as mortgages tend to have lower interest rates than other debt. This can help you improve your credit score by building good credit.

Debt Consolidation

If you have more than one mortgage or home equity line of credit, mortgage refinancing in Canada allows you to combine them all into one. When you do this, you’ll usually save money on the interest as line of credits have higher interest rates than mortgages. Paying out high interest credit card debts and high interest person loan debts are key reasons why people refinance a mortgage in Canada. It also saves you from having to make multiple payments every month. Instead of paying several different creditors, you will only one mortgage as the debt would be consolidated and rolled into your mortgage.

Your Credit Score Has Improved

If your credit score has gotten a significant boost, you may also be eligible to refinance to get a better mortgage rate in Canada. For example, depending on the specifics of the loan, a 25-point increase in your credit score could reduce your rate enough to help you save thousands of dollars in interest over the life of the loan.

Refinancing your mortgage in order to consolidate debts will always help with increasing your credit score. This is another key reason people refinance their mortgage. The credit bureau will take notice of the debts paid and reward you with increasing your credit score when consolidating debts that are reported to the credit bureua.
Paying bills on time, paying down debts, and lowering your overall credit utilization are a few ways you can improve your credit score. It’s a good idea to regularly monitor your credit score so you have a good idea of where it stands and when you might have enough leverage to refinance for a lower rate

If you have questions about how to refinance a mortgage in Canada?

Call us today to speak to an expert licensed mortgage broker. 647-588-0488

Decide if Refinancing Is Right for You

Mortgage refinancing is a long-term decision. Should you refinance your mortgage right now? You should always discuss your options with a mortgage broker and explain to him your current needs for access equity from your home along with future plans for your property, to see if you have good reasons for doing so. Some good reasons for refinancing your mortgage include:

  • Lower your monthly payments
  • Home renovation
  • Buying another property
  • Paying for education
  • Investing funds into your business
  • Debt consolidation
  • Getting a lower interest rate
  • Improve credit score
  • You want to take cash out for unexpected events

All of the above are great reasons to refinance your mortgage.

Decide If It's Your Best Option

Should I refinance my mortgage in Canada, is a question you must think long and hard about before you decide.

Refinancing your mortgage should be of benefit to you. Most times it will result in a lower interest rate, but there are things you need to consider before looking at refinancing loan options.

Find out with your property value based on the current market with a little bit of your own research.

Also, look into seeing what rates are currently being offered, again with a bit of your own research.

The current market conditions also impact the refinance. In almost all cased, it is optimal to contact Arash Sef and speak with an expert licensed mortgage broker as Arash is experienced in navigating and educating all home owners on their difficult refinance decisions. We will go over all of the pros and the few cons of a refinance (such a paying a penalty to break your current mortgage)

Consider Your Credit

A good credit score is one of the most important factors in refinancing your mortgage. It’s the first thing that traditional mortgage lenders like a bank will look at when determining if you’re a good fit for a loan. They need to be able to determine if you’ll be able to make your monthly payments or if you’re going to be a risky investment.

Mortgage Refinancing With Good Credit

Refinancing your mortgage with good credit allows homeowners the best possible options. If your credit has improved since you obtained your first mortgage, you’ll likely be able to get more favourable terms with your mortgage refinancing options.

Mortgage Refinancing With Bad Credit

If you have bad credit, it doesn’t necessarily mean you are out of options for refinancing a mortgage in Canada. Arash Sef’s programs help homeowners with good or bad credit. You can refinance your mortgage with bad credit through alternative lenders (B lenders), where you can qualify based on your equity and your home. If your income doesn’t qualify with a B lender, you will be access to private lenders through Arash Sef that do not qualify based on income or credit. Our Private Lenders are strictly equity based lenders. With a Private Lender refinance mortgage, you are approved based on the equity in your home and not your credit FICO score. The only requirement for getting approved is an appraisal confirming the value and condition of your home, along with your current mortgage balance and details. Don’t worry about your credit! We can secure approvals for homeowners with good or bad credit.

Mortgage Refinancing With Low Income or No Income

If you are self-employed or have low to bad credit, don’t worry. Alternative mortgage lenders and private mortgage brokers such as Arash Sef will be happy to find the perfect solution for you.

Refinancing your mortgage starts with the equity built up in your home. Secondary factors are income and credit when seeking a mortgage though lenders. Banks and institutional lenders will always require the loan amount to be approved as per the debt servicing ratio requirements they have. Arash Sef will help you refinance your mortgage with alternative lenders and private lenders are are strictly equity based. This means Refinancing your mortgage doesn’t require good credit or a high income. All it requires is home equity. This is one reason that mortgage refinancing is so popular.

Don’t hesitate to reach out to us. We will be glad to hear you out and provide expert guidance in the refinancing process regardless of your income amount or credit score.

Consider Your Refinancing Options

Before making any contractual financial agreements, you should always know what your options are. It’s important to know all the different kinds of refinance mortgage options that are available to you, so you’ll be able to make a more informed decision and find an arrangement that will work best for you. 

A second mortgage is a popular refinancing arrangement that you can get with your home equity. This is just an additional mortgage on top of your existing one. You’ll need to be able to make sure that you can make both payments before taking out a second mortgage. 

A home equity line of credit, or HELOC, acts like any other line of credit. Your home or property are assets that you’re borrowing against.
You can borrow up to an agreed-upon credit limit. Once you’ve paid that back, you can borrow up to that credit limit again. 

If you’ve made prepayments on your mortgage, you can potentially borrow against that, as well. You can also look into getting a reverse mortgage if you’re a homeowner over the age of 55. 

It’s important to understand what different kinds of mortgages are out there, as well. There are variable-rate mortgages, to start. These fluctuate, depending on the current market rate. 

There are also fixed-rate mortgages. Fixed-rate mortgages remain constant, regardless of how the market behaves. It will remain constant for the duration of your mortgage. 

Lastly, there are hybrid mortgages that are a combination of fixed and adjustable rates. 

Calculate The Total Cost of Mortgage Refinancing

There are many additional costs of refinancing a mortgage that you must calculate. Additional expenses include: 

  • Appraisal costs
  • Title search fees
  • Title insurance fees
  • Legal costs

Once you’ve figured up all of these additional costs, you should have a clear idea of whether or not refinancing your mortgage is right for you at this time. These fees will be deducted from the proceeds of the equity, except for the appraisal cost which an up front cost that you will be required to be pay directly to the appraisal company. The appraisal can be paid with your credit card as well.

Submit Your Application

Once you’ve decided that refinancing your mortgage in Canada is a good option for you current, it’s time to speak with us and start an application for refinance. Approaching lender’s directly can be counter productive as each lender will ask your for different set of paper work to provide income and tax documents. Each lender will also check your credit and over a few credit checks, your credit score can be compromised. Instead, contact Arash Sef today and with one credit check we can shop your application with all banks, A lenders, B lenders and Private lenders in Canada to get you the best options that are tailored to your needs.

Pros and Cons of Refinancing a Mortgage in Canada

Advantages of Refinancing Mortgage in Canada

  • Gain access to your home equity at a low rate
  • A fixed mortgage rate lets you lock in a lower mortgage rate
  • You can borrow a large amount of money all at once
  • You can extend your mortgage amortization to lower your monthly payments
  • Consolidate your debt at a lower rate

Disadvantages of Refinancing Mortgage in Canada

  • Rates could be higher than your mortgage renewal option
  • You could be charged penalties if you refinance before your mortgage is up for renewal
  • Approval can take time
  • Frequently resetting your amortization can cause you to pay more interest

These are the pros and cons of refinancing a mortgage in Canada. Arash Sef specializes in refinancing mortgages in Canada, with the quickest approval process in the industry. Reach out and get a refinance mortgage in Canada now.

Approval and Reviewing Your Agreement

If you’ve reached this point of our definitive guide on refinancing your mortgage in Canada, that means a lending institution has more than likely already assessed your loan application and determined that you were approved to refinance your mortgage. At this stage, you need to carefully assess the offer they’re giving you and weigh out all of your options.

Before accepting the approval, carefully read over the terms of the refinancing agreement. Pay close attention to the interest rates, fees, and all other costs associated in the mortgage under the provisions section of the mortgage commitment. You might be able to work with a mortgage expert to secure a lower interest rate for even more favourable terms.

As you can see, there’s a lot ground to cover in the mortgage refinance process, but Arash Sef takes pride in educating homeowners on all of their refinance options in order for you to get the absolute best refinance mortgage in Canada.

Are You Refinancing Your Mortgage in Canada?

Every homeowner should consider refinancing their mortgage at some point in the term of their current mortgage in order to access lower interest rates being offered other lenders.

Working with an experienced mortgage broker will make your mortgage refinance as easy and as effortless as we do all the heavy lifting for you by renegotiating your mortgage terms with all lenders. Arash Sef will walk you through the entire early as 24 hours and find the best mortgage refinance rates for you in Canada.

Low Rates

Thanks to the high volume of business I fund annually, I have access to unpublished promotional rates through my network of lenders

Fast Approval

I provide quick and easy approvals, as well as fast close options for those in need of a quick closing timeframe.

Good Or Bad Credit

I have access to an incredible list of trusted lenders – including banks, credit unions, trust companies and private funders – to find a mortgage product and rate that fits your exact needs.

Any Income Type

Every borrower has unique short and long-term financing goals. I pride myself in providing the solution that’s right for you throughout every stage of your time as a mortgage holder.

Approved On Equity

Is there equity in your property? If so, You’re Approved!

Refinance Your Mortgage Today And Start Saving Immediately!

Current MortgageRefinance Mortgage
Home Value: $600,000Home Value: $600,000
Current Rate: 4.99%Refinance Rate: 2.6%
$300,000 Mortgage @4.99% = $1,599/month$400,000 Mortgage @2.6% = $1,598/month
$50,000 Credit Card Debt @ 20% = $833/monthCredit Card Debt = Paid
$25,000 Auto Loan @10% = $208/monthAuto Loan = Paid
$25,000 Store Card @29% = $604/monthStore Card = Paid
Total $3,244/monthTotal $1,598/month
You Save $1,646/month!!!

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