5 Reasons Why Now Is a Good Time to Refinance Your Home
Making the right financial decisions is important, especially when it comes to your home and mortgage. Waiting for the right time to refinance your home can make a big difference in the outcome. Choosing to refinance provides you with the flexibility to pay off your current mortgage while also addressing other loans and financial commitments. Refinancing allows you to borrow money to achieve other financial goals while also getting a new mortgage with new terms.
Now is a great time to consider refinancing. Here are 5 reasons why you should take action if you’re considering refinancing in the near future:
Capitalize on price gains over the past 3 years
Many homeowners have sat back and watched the value of their home increase significantly without having to do anything. Real estate prices across Ontario have been consistently on the rise, especially over the past three years. Refinancing allows you to take advantage of the additional value in your home. While price gains may increase, we could also see a leveling off in the real estate market.
The market has peaked
With the recent drop in real estate prices in the GTA, and with pricing leveling off across Ontario after a red hot spring, the real estate market has peaked. This makes selling your home less tempting.
It’s time to stay
If you are planning to stay in your current home for the long term, now is a good time to refinance. You can take advantage of lower interest rates, lock yourself into new mortgage terms for the future, and access cash to invest in your home or to achieve other financial objectives. Many people refinance to do a large renovation project and create more value for their home. If you are going to stay and consider your current home your forever home, why not renovate and make it uniquely yours?
Consolidate Your Debts and Improve Cash Flow
Simplifying your financial situation is important. One of the most effective ways to simplify things is to consolidate your debts through mortgage refinancing. This allows you to combine previous debt and higher interest rates into one easy to manage, lower interest payment. Plus, refinancing also can help you improve cash flow and get access to the money you need for other financial obligations.
Lock in a low rate for the long term
Interest rates are low, but they are on the rise. With the Bank of Canada increasing interest rates twice in 2017 and the possibility of future increases, now is a great time to refinance and take advantage of a lower interest rate. Locking in now can save you money on interest rates over the long term. It’s definitely a move worth considering, especially if you plan to be in your home for the foreseeable future.