Four valuable tips to ensure you get the best possible deal when refinancing
Considering a refinance on your mortgage is a big step and will require lots of thinking before you go ahead. Here are a few valuable tips that you should keep in mind when considering refinancing your current mortgage:
- Personal and employment circumstances
It is vital that you consider your employment and personal circumstances when deciding on a rate. If you feel that you are likely to be faced with changes to your circumstances in the near future, a variable rate maybe the way forward and then you can switch to a fixed rate once your situation improves.
- Explore payment options
All variable rate mortgages are convertible to a fixed rate without any penalties or fees to the applicant. According to the Financial Consumer Agency of Canada, you will also have the option of capping interest rates to ensure that the rate does not go beyond the rate agreed upon and maintain what is referred to as a “hybrid” or a “combination” where the mortgage is partially financed at a fixed and a variable rate.
- State your terms
You can let your mortgage broker know the duration that you would like on your mortgage – from one year up to five years. The amortization period of your mortgage will be based upon the payment amount and the frequency (weekly, bi-weekly or monthly) of your payments.
- Consider a flexible payment schedule
Depending on how fast you wish to complete paying off your mortgage, you have the option of choosing how frequently – weekly, bi-weekly or monthly, you would like to make payments. The sooner you reduce your principle amount will result in lower payments on interest.
Please read the full article on Globe and Mail for more information on refinancing your mortgage.
If you are considering refinancing your existing mortgage in the New Year and would like to speak to a mortgage broker on refinancing options available to you, contact the team at mimortgage.ca today. To get pre-approved today, apply now through our secure online website or speak to one of our agents at (866) 452-1100.