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Five Things You Need To Consider Before Refinancing

Refinancing your mortgage can have numerous advantages but it can also be very expensive if you do it wrong or choose the wrong lender. Refinancing, therefore, should always be done with the advice of a professional mortgage advisor.

Before you refinance, here are five things you’ll want to consider:

  1. Refinancing lets you take advantage of lower interest rates

One of the most common reasons that Canadians choose to refinance is to take advantage of lower interest rates. If mortgage interest rates have dropped, or if you have high-interest debt that you wish to consolidate into your mortgage, then refinancing can save you hundreds of dollars each month.

  1. Refinancing can help you reduce or extend your amortization period

Perhaps your income has changed recently. If it has been reduced, then you may want to reduce your monthly payments by extending your amortization period. If your income has gone up, perhaps you want to pay off your mortgage faster. Refinancing can help with both.

  1. Refinancing comes with penalties

If you are breaking your mortgage to refinance, then you are going to be hit with a penalty. But don’t let this deter you. The trick is knowing whether paying the penalty to refinance will ultimately be worth it. Your mortgage broker can help you determine this.

  1. You will need to consider your credit

If you have poor credit, the chances of you being able to get refinancing from a traditional lender are slim to none. Chartered banks are not likely to give very good rates to those who have recently lost their jobs, who have declared bankruptcy or to those who are self-employed and cannot prove their income.

The good news is, that there are alternative lenders out there who specialize in helping those with bruised credit or irregular incomes get the refinancing that they need. Be sure to use a mortgage broker to help you find a lender that is reputable.

  1. Remember to shop around

Most people can probably get refinancing with their current lender, but if they don’t shop around they are unlikely to get the best rate. Mortgage brokers have access to a large pool of lenders including lenders that specialize in helping those who are self-employed or those that don’t have the best credit.

If you are considering refinancing your mortgage and need help deciding whether it is right for you, then contact Matrix Mortgage Global today at 1-877-371-5293.

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