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Selling your home is a big decision. It also means moving, which can take a serious toll on your finances and be a real hassle. It’s not something that most people take lightly and there’s other factors at play. What effect will it have on your kids? Will you be able to profit from the experience? Will a new home meet your needs? And most importantly, does the need outweigh the cost and stress?

When asking yourself if it’s time to sell your home, you will want to consider the following.

Is it a Seller’s Market?

Have you noticed a lot of your neighbours are selling? Does it feel like a lot of homes in your neighbourhood or building are going for above asking?

One of the best reasons to sell is to turn a profit. This will allow you to upgrade your home and lifestyle. In most cases, one’s home is their greatest investment.

Does your Current Home Not Fit your Needs?

While it might not check off every box, your house or condo should enhance and not detract from your life. If your space feels cramped it might be time to consider selling and upgrading. This isn’t to say you should upgrade just so you can fit a second car but if you need a bigger garage and an extra bedroom then your current home just might not fit your life.

Your Finances have Changed

Life changes and it changes fast. If you lose your job or want to take a chance on a new business venture, then selling your home might make sense. You never want to take a loss but downgrading is a proven way to balance your finances if challenges arise.

On the flipside, if you come into some money or a fortuitous promotion then it might be a good idea to sell and upgrade into something closer than your dream home.

The best advice is to give thought to moving if you find yourself with multiple reasons, such as, improved finances and the value of your home has increased. That’s a good benchmark to accept that it is time to sell.

If you have been reading this blog for some time, you have probably learned that there are some serious benefits to a home equity loan. Surprisingly, it’s still an avenue that many people have left untraveled. It might be the most proven yet underused way for homeowners to access money in times of need.

When you want a loan, most people have several options. Lines of credit, credit cards and even borrowing from someone they know. Each has benefits and drawbacks but none have the specific benefits of a home equity loan or line of credit.

A Home Equity Loan is like Enjoying the Perks of your Investment

For most, their home is their greatest asset. To be able to leverage your investment to access a loan is to leverage your own personal equity. The process comes with a greatest level of ease. For years, you pay your mortgage every month, so why not have it work for you when you need it? This is one of the benefits to purchasing instead of renting.

Since these are secured loans, approval is easier and you will be more trusted in the eyes of the lender.

A Home Equity Loan Allows you to Potentially Borrow More

The way a home equity loan works is you get to borrow against whatever you have invested into your home. If the value of your home is $500,000 and you’ve paid $200,000 of your mortgage, then you can borrow $200,000.

Not many loans give you access to that kind of money. Your home equity affords you greater borrowing ability.

You’ll Probably Enjoy a Lower Interest Rate

Home equity loans generally yield a lower interest rate, which means you can enjoy more of the money while you pay more towards the principle. With interest rates being the biggest detriment to borrowing, this is obviously a huge boon and should be a deciding factor.

There’s lots of options and each situation is different. Consider a home equity loan and see if it’s the best option for your life.

How Do You Know If You Should Refinance a Mortgage?

Refinancing a mortgage is when you pay off the existing mortgage and set up a new mortgage. Homeowners can choose to refinance with their current lenders or find a different lender. There are a lot of reasons to consider when deciding whether or not to refinance a mortgage. While most people chose to refinance simply to take advantage of lower interest rates, there are other things to consider too, including amortization periods, penalties, hidden costs, and switching to another lender.

The fact is, homeowners should consider refinancing their mortgage if it makes sense to do it. How to tell exactly when or if it’s time to refinance a mortgage is a personal decision that should be decided after considering a lot of different factors.

Ultimately though, property owners refinance to improve the terms of their current mortgage. The first step is to determine what you want to accomplish. It’s time to refinance a mortgage if you want to:

• Take advantage of low interest rates
• Replace an adjustable mortgage with a fixed-rate mortgage
• Increase the amortization period to lower mortgage payments
• Shorten the amortization period to pay off the mortgage more quickly
• Consolidate high-interest credit-card debt
• Access the equity in the home to buy investments, purchase another property
• Tap the equity to pay for renovations, or tuition, or increase retirement income

That said, it’s a good idea to review the mortgage every year. That’s because Canadian homeowners spend thousands of dollars on their mortgages; money that could be saved or put to better use elsewhere.

Nothing is free though; refinancing a mortgage has its costs. There are penalties and fees associated with refinancing a mortgage. The penalty for refinancing a mortgage is usually three months’ interest at the current rate.

But banks want to keep their clients, so there is a lot of leeway. For example, if you discuss refinancing a mortgage with another lender and tell them you want to move the rest of your banking business their way (RRSPs, accounts, etc) they may pay off some or all of the penalties.

Even if the closing costs and penalties are not covered, this doesn’t mean it’s not a good idea to refinance a mortgage. It’s just important to weigh the costs and be sure you’re making a good decision.

What Are the Different Ways of Refinancing a Mortgage?

There are a number of options available to Canadian homeowners looking to refinance their mortgage: breaking the mortgage early, taking out a home equity loan, and a home equity line of credit (HELOC).

Breaking the existing mortgage early

One of the most popular reasons for breaking a mortgage early and refinancing is to take advantage of lower interest rates, consolidate debt, or access the equity in the home. Finding a lower interest rate and consolidating debt will help homeowners lower their interest payments and save money. The lower interest rate will also make it cheaper to borrow money for renovations, etc.

In these cases, it’s a good idea to renegotiate the existing mortgage and take on a new one with a new lender; one that understands your short and long-term financial needs.

Add a Home Equity Line of Credit

For those thinking of making renovations on their home or paying for their child’s tuition, an HELOC is an easy and inexpensive way to borrow money. An HELOC is basically a revolving line of credit that gives homeowners access to the equity they’ve built up in their home. Equity is built up in a home every time a mortgage payment is made and when the value of the home increases.

An HELOC is different from breaking a mortgage. With an HELOC, property owners are only responsible for the interest payments each month on the outstanding balance. When a mortgage is broken and refinanced, the homeowners need to make set monthly payments on the amount borrowed, just like with the original mortgage.

If refinancing a mortgage sounds like it might be the right choice, talk to a mortgage lender near you and determine what the best options are. Just remember, do the math and make sure you’re getting what you want with the refinanced mortgage.

Canadalend.com, Helping Canadians Consolidate Debt

There is a lot to consider when deciding whether or not it’s a good time to refinance a mortgage. The mortgage experts at Canadalend.com can help you refinance your mortgage.

Our licensed mortgage agents will explain the refinancing process and help decide if refinancing a mortgage is a good option. If the time is right for you to refinance the mortgage, we’ll help you find the lender best suited to your lifestyle needs.

Because the mortgage professionals at Canadalend.com are independent, we have access to hundreds of different lenders. Canada’s big banks will only offer you their products; whether they’re best suited to your needs or not.

This gives you the peace of mind to know that Canadalend.com is helping you build value and save money.

To find out what your mortgage refinancing options are, contact Canadalend.com today. Or apply online and a Canadalend.com lending specialist will help you set up an appointment for a free personal consultation at your earliest convenience.

Timing is a tricky thing. When it comes to finances, it’s sometimes hard to know whether one should be proactive or reactive. There’s even a tendency to put things off until things have hit rock bottom or until every star has aligned.

This isn’t to say there’s a right way or a wrong way when it comes to taking on a loan or accumulating debt. These are big decisions and there’s quite a few variables to wade through.

Let’s look at some factors that should be considered when deciding if now is the right time to apply for a home equity loan.

Why do I need the Loan?

This might be the biggest question. You never want to take a loan or put your house up as collateral unless the reason is a good one. There are a ton of good reasons—medical emergency, business opportunity, home renovations.

If the reason feels legitimate then the timing is probably legitimate as well.

Will I get the Best Interest Rate and Repayment Plan?

It’s a simple question: will you get the best deal when you apply? If you believe that there’s a better interest rate around the corner or that you can improve your credit score, then the best advice might be too wait.

Timing isn’t just about what’s happening in your life. It’s also about what’s happening with the lender and if you can secure the best deal.

What if my Situation Changes?

If you need the money today but believe that your situation can change, then it still might make sense to borrow money against your home. In this case, the solution might be a home equity line of credit where the funds will be available to you. Like any line of credit, you only must pay back what you use so if your situation changes then no harm done.

Applying for loans is a big deal and the timing must be right. Be honest with your situation and logical and, most importantly, speak with a professional who can help guide you to the right decision.