Depending on what the market is doing, you may have considered refinancing your mortgage for the sole reason of taking advantage of lower interest rates. Having a conversation with us about this is well worth your time.
When you break your mortgage early, you will likely face a penalty for doing so. However, if the payment and interest savings add up to being more than what your penalty is, then it is definitely worth doing.
A Home Equity Line of Credit, or HELOC, does not have a pre-payment penalty. Nor does an open variable rate mortgage. If you are in a fixed or closed term, you will be facing either an Interest Rate Differential (IRD) or a 3 month interest payment penalty. To calculate 3 months interest, just take your mortgage balance and multiply it by your current rate. Divide that number by 4 and viola! That’s what you will be facing to break that mortgage early (plus some potential administration fees).
Calculating an IRD, however, is a bit more involved and is factored on a number of things such as your current rate vs. what rates are today for your remaining term, whether you got a discount on your original rate, and even which lender did your mortgage as every institution can differ on how they calculate it.
It’s best to call us and let us do the work for you. We can tell you how much it will be to break your current mortgage and calculate your savings by doing the switch. If it doesn’t make sense to do, at least you know that! If it works out to your benefit in the long run, we’ll handle the entire process for you.
A 10 minute phone call may save you thousands of dollars. Call now!
Using the equity in your home to consolidate outstanding debt can sometimes come out benefitting you in the long run. Other times it can set you back. While considering whether or not to do a consolidation, talking to us is a vital first step before making any decisions or commitments.
What rate you would qualify for, interest costs you would save or not, and new payment structures are crucial factors in making this decision. There also will probably be a penalty to get out of your current mortgage so that needs to be factored into the equation. Most of the time we can arrange to have your penalty incorporated into your new mortgage so you don’t have to pay out of pocket but would only recommend moving forward with a consolidation if it makes sense to do so.
Our staff will assess your entire situation and look at every single applicable factor in doing a debt consolidation before taking any action for you. First, second and even third mortgages can be utilized to facilitate a consolidation. The equity in your home can be an extremely useful tool and we are here to guide you through the decision making process and execute for you if warranted.
Call us today to start the conversation! You’ll be in the right hands.
If you’ve landed on this page, chances are that you have some big ideas for your home. That’s great! Improving your home has multiple benefits such as increasing its overall value and appeal, adding and/or subtracting desired living features, making more room for a growing family, and adjusting your space so it suits your lifestyle and needs better.
What better way to facilitate any wanted changes by using your home to do so? Using your hard earned equity is an excellent way to assist bringing your vision to life. Your monthly payments probably won’t go up dramatically and you don’t have to drain your savings account to accomplish your envisioned renovations.
Changing your home can often be better than moving. So a renovation loan is a great consideration before deciding to relocate. Call us now so we can give you a run-down of your options.
The equity that you build up in your home can sit dormant until you sell or it can be used to make a difference in your life. There are endless reasons to want to leverage equity. Helping your kids, getting a jump start on an RRSP for retirement, making a big purchase or even taking a family vacation – whatever your motivations may be, a conversation with us will get you answers to some questions you may have about doing this.
Do the means justify the ends? Our calculations will help you figure that out. Call us or book an appointment to see if pulling equity from your home makes sense for you to do.