Why refinance? The simple reason is that life happens! Sometimes life presents itself with unexpected opportunities or challenges. These life events can often impact us financially, and then we are faced with important decisions.

If you own your home or other real estate, sometimes a refinance can help you with the decision-making process. A refinance is when you register a new mortgage or increase your current mortgage to draw equity out of the real estate you own. It is also referred to as an equity take out.  Refinancing can be used for consolidating debt, home renovations, investments, student tuition, or purchasing other real estate. With how the interest rate environment has changed in 2023, more and more people are requiring a refinance to restructure their finances.

What can you expect if you decide you want to refinance? You will have to fill out an application form, provide employment/income confirmation, and the details of which bank has any existing financing. There will likely be an appraisal required so the bank can determine the lending value of the property. You can arrange up to 80% financing, depending on how much you qualify for. Sometimes, a lawyer or notary is required to re-register the mortgage, and then once the new financing is registered, you receive the proceeds via the lawyer or notary’s office. The costs for a refinance are approximately $1,200 including the appraisal and legal fees. If your mortgage was registered as a Collateral Charge, you may be able to use the existing charge to arrange the equity take-out, with no additional legal fees.

If your existing mortgage is not yet up for renewal, you can still look at taking equity out of your home. You will have to make the decision to either increase your existing mortgage and possibly have a blended rate, or discharge the old mortgage to start with a new term. If you decide to discharge the old mortgage, you will have to enquire with your existing lender to find out how much of a penalty there will be.

If life has presented unexpected opportunities or challenges in your path, and you think a refinance might help you, please email or call with any questions. I am happy to help!