Whether you’re looking into consolidating debt, renovating your home, or simply reducing your monthly payments, we can guide you through the process. A mortgage refinance in Canada can help you take control of your finances. Get Approved Today!
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Your ability to get approved to refinance your home with a bank or traditional financial institution has become increasingly more difficult. Most major lending institutions have adopted stricter and more stringent policies concerning who they can qualify and approve for home refinancing.
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Bad Credit Renewal Refinance - Turnedaway.ca
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The past few years have seen a spike in the number of Canadian homes being bought and sold, with mortgage applications reaching record proportions. What isn’t commonly reported is the growing trend of homeowners accessing equity in their existing homes and properties through refinancing.
With the Bank of Canada considering yet another increase in the lending rate, now may be the best time to get equity from your home. Accessing the equity in your home is easier than you think, and we can help you through the process and get approved.
Home Refinance in Canada
Refinancing a mortgage in Canada using traditional lenders is becoming tougher. The more rigorous lending criteria put in place by banks now look closer at your income, credit history, and job stability. Even if you qualify for these new rules, you are usually restricted to lending 65% of the equity.
Luckily, there are other options for mortgage refinance, such as alternate lenders. They often have more relaxed qualifiers, meaning you can leverage the value of your property even when the conventional financial institutions have turned you away.
Maximize Your Mortgage Refinance with Our Expert Assistance!
We understand that refinancing your mortgage is a complex process and can be overwhelming. Take advantage of our expert advice today and let us help you find the best mortgage refinance solution that works for you.
What is Home Refinancing?
Mortgage refinancing provides homeowners with the opportunity to replace an existing loan with a new one that may have a different interest rate, term, or an increased amount by allowing the borrower to access the equity in their home.
- Look at the value of comparable homes in the market.
- Multiply the estimated market value by 80%, which accounts for the standard mortgage amount for house refinancing.
- Subtract the outstanding balance of your mortgage from the 80% market value of your home.
- The remaining amount is the equity in your home, which may be available for refinancing.
Let experts at TurnedAway.ca guide you in your journey through the home refinance process.
When is a Mortgage Refinance Needed?
A mortgage refinance may be necessary if you wish to make significant changes to your mortgage agreement outside your current term.
A mortgage is a contract with a set term, so breaking the contract requires paying off your existing mortgage through refinancing with a new one. Some common reasons for a mortgage refinance include:
- Borrowing more money by increasing the mortgage amount.
- Changing your mortgage rate before the end of your term.
- Altering the mortgage amortization period or term length.
Ready to explore your mortgage refinance options? Contact us today to speak with one of our knowledgeable and experienced mortgage specialists to find out how you can make changes to your mortgage agreement that better suits your situation.
Should I Refinance My Mortgage?
If interest rates have decreased since you obtained your mortgage, house refinancing is worth taking a look at.
To qualify, your loan-to-value ratio must be lower than 80%. Lenders will also review your monthly income, debt payments, and financial statements, through documents that may include:
- T4 slips
- Mortgage statements
- Letter of Employment
- Property tax bills
Contact us today to speak with our team of mortgage experts and find out if refinancing is the right choice for you. We’ll help you make an informed decision and guide you through the entire process. Don’t miss out on potential cost savings. Get in touch now!
How to Refinance Your Home Mortgage Loan
If you have been asking yourself “How do I refinance my home?”, the process is easier than you think. Your first step would be to break your mortgage contract early. This is when you end your existing mortgage and take a new one with your current or a different lender.
Is It Good to Refinance Your Home?
The Benefits of Refinancing
There are several reasons you may consider home refinancing. Below are the common reasons why many people choose to refinance their home:
Lower Interest Rates
When you pay your mortgage off, you must pay a prepayment penalty that isn’t avoidable. However, once you have done this, you can save money over time through a lower interest rate, which can be variable or fixed.
Accessing Equity in the Home
Refinancing can get you up to 80% of the value of your home. Releasing this equity in your home allows you some liquidity and more flexibility with your mortgage payment. The freed-up cash could also be used for any projects or investments you may be considering.
Consolidating Debt
One of the main reasons people choose to access equity in their homes is to consolidate debt. The money provided can be used to pay off high-interest debts like credit cards and personal loans.
Contact us today to speak with our expert mortgage advisors and find out how you can save money through lower interest rates by accessing the equity in your home and consolidating your debts. Take control of your finances and make your home and its equity work for you.
Costs of Refinancing Mortgage Canada
When you refinance your mortgage, there are certain costs you need to consider. These can include:
- When you refinance your mortgage, there are certain costs you need to consider. These can include:
- Legal fees
- Cost of a home appraisal
*Additional expenses may vary based on when and where you refinance.
When you opt to refinance with a different lender, expect to pay the mortgage discharge fee.
If you refinance your mortgage before the end of its term, prepayment penalties will likely apply.
Mortgage holders with a variable rate and closed mortgage must pay three months’ interest as part of the penalty cost.
When you have a fixed-rate closed mortgage, the penalty is either three months of interest or an interest rate differential – whichever is greater.
Home Equity Calculator
Use our home equity calcultor to see how much you may be eligible to borrow from your home’s equity. Click here to calculate!
Let TurnedAway.ca Help You Secure Your Mortgage Refinance Loan Today!
Our extensive network of lenders and mortgage loan expertise will enable us to work with you to evaluate your financial situation and provide you with the best loan solution to ensure your goal. Contact us today to take the first step toward securing your financial future.
Call Us: 1-855-668-3074!
How Can I Refinance My Home with Bad Credit?
Just because you have bad credit does not mean you won’t qualify for a home refinance. Even if you have been turned down by banks or conventional lenders, there are a number of other options.
Work on Improving Your Credit
This seems obvious, but many people neglect the impact that a small incremental improvement to your credit rating can bring. Pay off debts, pay them on time, and reduce your debt-to-income ratio.
Build Equity
The more equity you have in the property, the more likely you will be accepted for a refinance. Be patient and pay off your current mortgage until more equity has been built.
Look at Alternative Refinance Lenders
Often referred to as B lenders, alternative lenders are organizations other than major banks that can provide you with loans and mortgages.
Many people no longer have the income and credit history to qualify for major bank loans, so these are now a very popular alternative. Primary and second mortgages, home equity loans, and refinance are services B lenders can provide.
Qualifications to Refinance a Home
When refinancing your home, the requirements will vary depending on the lending institution, the type of loan, and the amount requested.
You can improve the chances of getting approved by:
- Ensuring you have an excellent qualifying credit score.
- Getting your debt-to-income ratio as low as you possibly can.
After this, you just need enough equity in the home itself. If you don’t, you may need to wait longer until it has accumulated. You should also have enough funds available to cover the costs of refinancing the home.
How Early Can You Refinance a Home?
Refinancing your mortgage is possible any time you choose, not just when it draws close to the end of its term. Early refinancing before the end of the loan term though may result in certain penalties.
When deciding whether to refinance, ask yourself if the money you could save is worth incurring a penalty fee. If it’s for debt consolidation purposes, it may make sense. However, if there are no savings after the penalties have been deducted, you may want to wait closer to the end of the term.
Ready to refinance your home but not sure if it’s the right time? Talk to our experts at TurnedAway.ca and get the advice you need to make the best decision to achieve your financial goals and health.
How Many Times Can You Refinance Your Home?
Canada has no rules or laws regarding how often you can refinance your home. This is a common question when people are applying for refinancing for a second or third mortgage term.
In theory, as long as you meet the acceptance criteria and have equity, you can refinance a home as often as you like.
Refinance Mortgage vs Home Equity Loan
Refinance Mortgage
Refinancing your mortgage involves obtaining a new mortgage that pays off the old one, often at a lower interest rate. Compared to a home equity loan, it has no separate loan or payment schedule.
HELOC
A home equity line of credit (HELOC) works similar to a loan. This operates like a credit card that is secured against the equity in your property. You can borrow as little or as much as you like.
Interest is paid only on the amount you have decided to borrow. Most HELOCs have a fixed interest rate, and you may pay a transaction fee when you use it.
How Much Does It Cost to Refinance Your House in Canada?
When you refinance your mortgage, there are some costs that will be incurred.
While there is the upfront cost of an appraisal, to determine your home’s value. Generally speaking, all other closing costs, including lawyer’s fees can be incorporated into the financing.
- Application fee
- Underwriting fee
- Appraisal fee
- Recording fee
- Credit Check fee
- Title services
- Survey fee
- Attorney/Closing fee
Pros and Cons of a Mortgage Refinance
If you’re a homeowner with a mortgage and have been considering a refinance, it’s important to weigh the pros and cons of getting one to make an informed decision on whether it’s the right choice for you.
Pros:
- Access your outstanding mortgage balance and home equity at a lower rate
- Lock in at a lower fixed mortgage rate
- Borrow a large sum of money upfront
- Have a lower monthly payment by extending your mortgage amortization term
Cons:
- Rates may be higher than mortgage renewals
- Early refinancing may result in penalties
- Passing the mortgage stress test and approval, if required, can take time
- Frequent resetting of amortization can increase interest payments.
Ready to explore the benefits of mortgage refinance? Speak to our mortgage experts at TurnedAway.ca and arrive at the best decision for your financial goals.
Best Home Mortgage Refinance Company
Now that you know how and why you should consider home refinance in Canada, check a wide range of traditional and alternative lenders to see who can offer the best rates.
Even if you have great credit, it’s important to work on improving it to increase your chances of having your application approved. From there, you’ll need to decide on the best method of refinancing, and Turned Away could certainly help you with that.
We offer home refinance and mortgage solutions to those who have been turned down by banks. Contact us and trust our experts to help you access equity in your property and secure the best interest rates available. Contact us today and take the first step toward financial freedom.
