New interest rates and refinancing fees<\/h3>\n
Know that refinancing your home, allows you to obtain a new\u00a0interest rate\u00a0on the whole mortgage which, moreover, will be different from that of your original mortgage.<\/p>\n
However, refinancing your home may involve additional costs such as legal fees (notary).<\/p>\n
Why remortgage your home?<\/h2>\n
Here are 9 reasons why you can remortgage your home.<\/p>\n
Re-mortgaging your home for renovation<\/h3>\n
By taking out a\u00a0home improvement loan<\/a>, you benefit from a lower\u00a0interest rate\u00a0than a regular credit card or loan, or a personal line of credit.<\/p>\n This type of financing is recommended if you are thinking of doing more extensive renovations and the repayment of this loan is done over a longer period.<\/p>\n For example, if you decide to refinance your home, it is possible to obtain an amount for your renovations based on your current mortgage balance. It is possible to obtain a\u00a0refinancing\u00a0up to 80% of the value of your property (fair market value).<\/p>\n Opting for a mortgage\u00a0refinance\u00a0allows you in some cases to benefit from a lower\u00a0interest rate, when you are in an environment where rates are falling. Depending on the market, you may be able to get a better rate but this is not always the case.<\/p>\n You can refinance your home to access the\u00a0equity\u00a0in your property. However, you cannot access 100% of the\u00a0equity\u00a0or available equity because\u00a0refinancing\u00a0is only possible on 80% of the fair market value.<\/p>\n The\u00a0equity\u00a0in your home is the difference between the value of your property and the balance of your mortgage.<\/p>\n This\u00a0equity\u00a0in your home varies depending on:<\/p>\n By taking out a home\u00a0equity\u00a0mortgage, you can access other offers, and increase the amortization\u00a0period\u00a0(for example from 18 to 30 years).<\/p>\n Contact our mortgage brokers for assistance.<\/p>\n You can also refinance your home to invest in an investment or rental property purchase. To do so, you must first evaluate the amount that\u00a0refinancing<\/a>\u00a0your mortgage would allow you to obtain. If you want to buy a second home, such as a\u00a0cottage<\/a>, it is possible to finance it with a second mortgage. You can borrow up to 80% of the fair market value of your home, but you will have to subtract the balance from your first mortgage. This would be like refinancing to take out equity that you could use for the down payment\u00a0on your second home<\/a>. The funds you get from your mortgage\u00a0refinance\u00a0can also be used to pay off your debts (credit cards, personal loans at high rates). However, banks require current taxes on the day you submit your\u00a0refinance\u00a0application. Thus, it is often impossible to refinance your\u00a0mortgage\u00a0to pay your taxes.<\/p>\n The advantages of this option are:<\/p>\n Refinancing your home also allows you to invest in your RSP. It is possible to use mortgage\u00a0refinancing\u00a0to prepare for retirement. Getting financing to start your business is not always easy. That’s why refinancing your home is an interesting option for you if you plan to start your business. In addition, there are some tax strategies to consider.<\/p>\n Don’t hesitate to discuss your options with our brokers.<\/p>\n You can refinance your home at any time. The only requirement is that you qualify for mortgage\u00a0refinancing.<\/p>\n You don’t necessarily have to wait until your mortgage\u00a0expires\u00a0or\u00a0renews\u00a0to\u00a0refinance.<\/p>\n In case of refusal of\u00a0refinancing, there are other options to obtain liquidity, alternative banks allow to find solutions when qualification is impossible (Home Trust, Equitable Bank, B2B, Haventree Bank…)<\/p>\n The reverse mortgage<\/a>, also called “CHIP<\/strong>“, is a specialized product that allows you to use part of the value of your property to borrow cash without selling it.<\/p>\n Each month,\u00a0interest\u00a0is added to your loan and accumulates over the years, reducing the equity. In some situations, this option allows you to obtain funds when your retirement income does not allow you to live comfortably.<\/p>\n You can access a portion of the equity in your property through a home equity line of credit, depending on your situation options may be available.<\/p>\n Don’t hesitate to\u00a0make an appointment<\/a>\u00a0with our brokers to get advice.<\/p>\n\n Get a lower interest rate<\/h3>\n
![\"what-interest-rate-mortgage-financing](\"https:\/\/hypotheques.ca\/staging\/wp-content\/uploads\/2023\/03\/6345b2e47d8dfb2ae10102bf_taux-interet-refinancement.jpg\")
<\/div>\n<\/figure>\nRefinancing your home to build equity<\/h3>\n
\n
Re-mortgaging your home to invest<\/h3>\n
\nWe recommend that you discuss this with our mortgage brokers.<\/p>\nGetting a second mortgage to buy a second home<\/h3>\n
\nYou will continue to pay off your first mortgage while paying off the second.<\/p>\nRefinance your home to save money by consolidating debts<\/h3>\n
\n
![\"refinance-your-home\"](\"https:\/\/hypotheques.ca\/staging\/wp-content\/uploads\/2023\/03\/6345b33f7e1f048213e77a0a_refinancer-sa-maison.jpg\")
<\/div>\n<\/figure>\nRefinance your home to invest in your RSP<\/h3>\n
\nBy freeing up funds through\u00a0refinancing\u00a0your mortgage, you will get a tax deduction.
\nThis option must be evaluated beforehand.<\/p>\nRe-mortgaging your home to finance your retirement<\/h3>\n
\nMany products exist to do so, it is important to take measures when you are working, do not forget that to obtain a mortgage loan, employment income is essential, waiting for your pension and no longer having the income can limit your options.
\nIt is therefore important to be well advised by a broker beforehand.<\/p>\nRe-mortgaging to start your business<\/h3>\n
![\"re-mortgage-your-home\"](\"https:\/\/hypotheques.ca\/staging\/wp-content\/uploads\/2023\/03\/6345b3571e0e2c66f64c06bb_rehypothequer-sa-maison.jpg\")
<\/div>\n<\/figure>\nWhen can you refinance your home?<\/h2>\n
Other possible options<\/h2>\n
Reverse mortgage<\/h3>\n
Borrowing on amounts already repaid through a Line of Credit)<\/h3>\n