What is Mortgage Refinancing?
When you refinance your mortgage, you're paying off your current loan(s) and replacing them with a new one tailored to your needs. At Canadalend.com, we're not just about providing a service, we prioritize your needs and ensure you get the best product possible.
Based in the GTA, our team of trusted mortgage refinancing professionals is here to guide you through the process and ensure you make informed decisions about refinancing your home.
Mortgage refinancing restructures existing terms of a credit agreement. When people consider refinancing mortgages in Ontario, they seek more favourable changes to their payment schedule, lower monthly payments, access to equity, decreased interest rates, or alterations to additional contract terms.
Once approved, borrowers receive a new contract replacing their initial agreement.
The Advantages of Mortgage Refinancing
Refinancing offers homeowners the opportunity to access lower interest rates. Lower refinance mortgage rates generate significant savings for owners, increase their cash flow, and reduce monthly payments. As you pay off the mortgage, you can expect better refinance mortgage rates, making your loans more affordable and your financial future more promising.
The Bank of Canada’s Policy Interest Rate influences mortgage rates.
Homeowners can rest easy knowing refinancing can reduce their financial burden, allowing them to pay off debt faster. Refinancing a mortgage in Ontario allows you to pay less monthly and reduces financial strain. If your goal is to pay off your loan quickly, reducing the term may be your best option. It can provide the motivation and determination to take the necessary steps towards financial freedom.
However, if you struggle to make monthly payments, you can lengthen your terms, which will allow you to decrease expenses and increase cash flow.
Refinancing assists owners in accessing their home equity and helping them obtain a large sum of cash. It allows you to receive money immediately, which may be ideal for home improvement projects, tuition expenses, or other larger goals.
Homeowners can also lock into a fixed rate, which assists them with their monthly budgeting. Payments will never increase or decrease, making them predictable. Conversely, the variable rates of a HELOC are attractive if interest rates are low.
Our trusted agents will carefully examine your situation to determine the best product for you.
Types of Mortgage Refinancing
Rate-and-Term Refinancing
This type changes your current mortgage for a loan with different repayment terms or lower interest rates. It is suited for people who want lower refinance mortgage interest rates. However, it is only possible when existing market rates are lower than your current one. Refinancing to lower rates can significantly reduce monthly payments and total interest.
If you want to pay off your mortgage quicker and reduce interest, turn your rate-and-term refinance home loan to a shorter loan. It won’t change the amount owing, but payments are higher.
Cash-Out Refinancing
With cash-out refinancing, homeowners switch to larger loans by accessing their home equity for additional money. Homeowners can access 80% of their home’s value. The difference between your outstanding mortgage and the loan amount is what you will receive in cash.
This option is best for those requiring substantial money and can access lower interest rates. Many owners use it to pay for renovations or consolidate expensive debt. While you can use it for anything, we advise using it to further your financial objectives instead of discretionary expenses.
Cash-In Refinancing
Cash-in refinancing is when homeowners make a lump-sum payment to refinance a new mortgage, with the existing balance moved to the new loan. The new loan often contains better terms, refinance mortgage interest rates, or both.
It is advisable for those who aim to reduce outstanding principal amounts on their mortgage. Cash-in refinancing lowers the loan-to-value ratio, allowing owners to qualify for lower rates. It can help homeowners get rid of their private mortgage insurance.
FHA Streamline Refinance
This refinance home loan option provides a faster path to a new mortgage. Less underwriting and paperwork are involved, and it doesn’t require an appraisal or credit check.
FHA streamline refinances are for owners who want lower closing costs and faster timelines. Since no credit check is required, they provide options for those whose credit needs improvement.
No-Closing Cost Refinance
A no-closing-cost refinance eliminates paying closing costs on closing day. Instead, the fees are grafted into the new loan. This option works best for those who don’t want to have cash ready during closing. Depending on how long you wish to remain in your home, it may cost more.
This option is ideal for those who need refinancing, but don’t have money for closing costs.
Short Refinance
This refinance home loan type is available for underwater mortgages. The lender agrees to refinance the person’s loan to match their home’s market value instead of the original amount owed. This refinance option is best for those who want to remain in their home and require more affordable payments.
Reverse Mortgage
Reverse mortgages aren’t traditional refinance options, per se. They allow those aged 62 and older (can be 55+, depending on your lender) to turn their home’s equity into cash. They are available to people who have paid their mortgage and have sizeable home equity to receive tax-free income.
Owners use these funds to supplement retirement income and cover the costs of home repair or medical expenses. The money doesn’t require repayment until the owner dies or leaves their home. However, you must still pay for property taxes and homeowners insurance.
We Offer a Range of Solutions for all Your Refinancing Needs in Ontario
Our years of experience as a reliable mortgage refinance solutions provider have helped us become fine-tuned to all of our client’s unique financial needs. When it comes to matters of home mortgage refinancing, we understand that your home is probably one of the most valuable assets you may own.
So, if you are interested in refinancing your current home mortgage loan in Ontario, simply call Canadalend.com or click on apply online to get in touch with a mortgage refinance specialist. We will work with you to create a mortgage solution that benefits you, optimizes the use of your home equity and structures your mortgage in a smart and effective way!
Our team of home mortgage refinancing experts dedicate themselves to providing the best product for our client’s situation. Therefore, our five-star customer service ensures agents are accessible seven days of a week. Our convenient service will expedite your application to allow you quick access to funds.
Our specialists have specialized industry knowledge. They fully understand each product’s features and refinance mortgage rates, providing the best recommendations possible. We are dedicated to exceeding your expectations.
To book an appointment to discuss your financial goals with one of our specialized agents, call us at 1-844-586-0713 or email us at info@canadalend.com. For further information, you can also contact us here.