28 Nov 2019 Mortgage Refinancing
1. Determine Your Objective
As with any major financial decision, it’s important to ensure you’re refinancing your mortgage for the right reasons. As a rule of thumb, you should be attempting to shorten, or in the very least maintain your loan term, while reducing your interest rate. It’s highly recommended you consult with a mortgage professional to help evaluate the market and determine whether refinancing is your best option.
2. Familiarize Yourself With Your Finances
When starting the refinancing process, it’s important to understand where you stand financially. Mortgage agents will want to know your credit score to help determine your interest rate. It’s also important to be aware of your property’s approximate value to determine what level of financing you’re eligible for.
3. Weigh Your Financing Options
Depending on your credit score, income, equity, and property value you’ll have various options for refinancing your mortgage. Major Canadian banks tend to cater to borrowers with an above average credit score, while private mortgage lenders offer more flexibility, emphasizing your property value.
It’s important to shop around and use rate comparison tools to ensure you’re getting the best rate for your personal situation.
4. Calculate Your Total Costs
Aside from your updated interest rate, you’ll need to consider secondary fees and costs associated with refinancing your mortgage. These can include the following, among others:
5. Finalize Your Mortgage Provider
Once you’ve weighed your financing options and calculated total costs among various lenders it’s time to decide on the best partner to refinance your mortgage.
Finally! You’ve educated yourself, you’re aware of all the different types of mortgages and loans available, and you’ve received rates from various lenders. It’s time to submit your application and move forward with refinancing your mortgage.
Rateco is just one example of a mortgage rate comparison tool with an added layer of consumer benefit. Our proprietary auction enables private mortgage lenders to bid against one another to service your mortgage. Lenders bid their best interest rate on our totally transparent, open platform. This allows lenders to see what one another bid, encouraging competition and ensuring the borrower receives the best rate possible. Best of all, there’s no associated costs unless you decide to move forward with one of our lenders.