With interest rates being at historic lows, and housing prices being at all-time highs, more and more folks are looking into refinancing their mortgages.
Refinancing can create accessible cash out of your home’s equity. This means you can tap into your home’s equity and use that money in a few different ways.
Consolidate Debt
Some folks refinance their mortgage so that they may consolidate their debts. By consolidating you move your various debts owing (credit card, vehicle, etc) into one singular more manageable payment. While consolidating does not remove the obligation to the debts owed, it will drastically change the amount of interest paid on to the debt. Most Credit Cards have an average interest rate of 20%, so while consumers are still paying off their debt, they will save on the interest they would have otherwise been charged.
Investing in Property
If you’re considering an investment property or vacation home, you could use the equity in your first home to finance your second. By using your home’s equity it could free up money to act as a downpayment for another purchase.
Our Ottawa mortgage experts are here to help you refinance your mortgage and use this low-cost method of borrowing to:
- Access lower interest rates.
- Switch to a fixed or variable rate mortgage.
- Renovate your home.
- Invest in a new property.
- Invest in the stock market.
- Make a big purchase.
- Consolidate debt or increase loan amortization.
- Manage a financial emergency such as a death or sudden illness
When deciding to refinance your home, there are some important factors to consider. Refinancing can cost you between 2% and 5% of the land's principle and, just as your original mortgage did, it requires an appraisal, a title search and application fees. We recommend speaking with The Woollam Mortgage Team about your specific situation to determine the viability of refinancing your mortgage based on your specific circumstance.