Refinancing your mortgage in Ontario may be your smartest financial move this year. Refinancing may sound strange to some people; why would you ever take out a new mortgage to repay your current one?
Well, there are multiple benefits to refinancing your mortgage, and we’re going to go over some of the most important ones in this article.
Most Canadians are stuck on the idea that your mortgage is unchangeable, but that isn’t true. And if you’re not considering mortgage refinancing in Ontario, you’re likely losing thousands of dollars that you could save each year.
So, buckle down, and let’s see how you can save money on your mortgage.
The Benefits of Mortgage Refinancing in Ontario
Refinancing your mortgage can have multiple advantages for you; in most cases, you’ll save a lot of money long-term.
Here are the two main benefits:
Lowers your interest rates: Interest rates fluctuate over time, and if you factor in that most mortgages are 15 to 30 years, you can imagine how different interest rates can become in just ten years.
If your mortgage began when rates were higher, you could save thousands of dollars by refinancing today because you’ll pay your monthly mortgage at the current interest rates.
Lowers your monthly payment: If you’re struggling to pay your mortgage, you can refinance to spread the current balance over a new term. Refinancing will lower the monthly payments significantly.
When is a good time to refinance?
We’ve seen a few benefits to refinancing your home, but the problem is that you also need to spot the right time to do it. The conditions must be right for mortgage refinancing in Ontario to be worth it.
Let’s examine the three signs you should look for:
A lower interest rate: The first thing to look for is the interest rate.
Interest rates can change drastically over the years, but that’s not always the case. If the interest rates are considerably lower than your initial rates, it’s a good time to refinance your mortgage.
Improved credit score: The higher the credit score, the lower your interests will be. Let’s say your credit score used to be 300 when you took out your mortgage, but now you have worked on it, and it’s above 700.
Individuals with a credit score above 700 will usually get the lowest rates; if you’re one of them, mortgage refinancing in Ontario may be worth it.
You earn more: If you received that long-awaited promotion at work and saw a big jump in your income, then it may be the perfect time to refinance.
Going from a 30-year mortgage to a 15-year term will save you thousands of dollars in interest yearly.
If you’re looking for professionals with years of experience in the mortgage industry, then Northwood Mortgage is your solution.
We’re one of the GTA’s largest brokerage firms, providing unmatched service while ensuring complete customer satisfaction. Whatever your mortgage refinancing needs are in Ontario, we can help you.
Refinancing your home can be life-changing if you nail the right time to do so. Now you’re also aware of the benefits it brings and the signs to look for before refinancing your mortgage.