Refinance your mortgage to access home equity
Refinancing requires you to break your current mortgage term early and consolidate your mortgage and other debts into one loan of up to 80% of your home’s value (otherwise known as the LTV, Loan-to-Value ratio). Since you are breaking a contract, you will incur a penalty. The penalty can range from three months’ interest with a variable mortgage to a more significant interest rate differential penalty with a fixed mortgage. This make a Second mortgage a more attractive option for some borrowers.
Refinancing can allow you can combine all of your high-interest debt – including debt from credit cards, car loans and personal lines of credit into one new low-rate mortgage loan. By consolidating debt in a secured loan, backed by the equity in your property. You can also use the money to invest in a business, buy a cottage or renovate your property.
Many borrowers select to refinance their mortgage to consolidation debt. This is an amazing option for homeowners who are having difficulty making their full monthly payments on time. With the Refinance option, you only make one reduced payment per month. Consolidating debts into your mortgage allows you to lower your monthly obligation by extending your payback period.
Mortgage loans carry the lowest interest rates as they are backed by your home equity, lending a mortgage is much less risky in the eyes of lenders.
By lowering your monthly payment and consolidating multiple payments into one, you are more likely to make every payment on time and in full. This will improve your credit score, giving you greater options with lenders in the future.
Home equity is a simple calculation. Start with your home’s value minus the balance of your current mortgage. We work with institutions and equity lenders that will lend you up to 85% of this number. Refinancing your home equity will allow you to withdraw and invest in a number of ways, including home renovations, additional real estate, post secondary education and much more. You can access up to 85% of your home equity by increasing the value of your mortgage through a refinance.
A member of our team will be happy to discuss all the options available to you. We can find the best rates and options for your refinance. Income and past credit issues are not an issue . We work with all types of lenders- who are looking for borrowers just like you! We work hard for each and every client.