The moment of renew your mortgage approach? In addition to renegotiating rates and terms, you can take this opportunity to plan and finance new projects, adopting the mortgage refinancing strategy.
Here’s how to operate this powerful lever.
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Refinance the mortgage?
The approach is simply to take advantage of the market value of your home and the repayments already made on your loan. Growing over the years, this equity equals the value of your home minus the balance owing on your mortgage.
So by asking for a refinancing when you renew your mortgage, the amount granted will then be available to you to renovate, buy a cottage, plan your retirement or consolidate certain debts.
Finance your renovations
Renovations are the number one reason for mortgage refinancing. Indeed, if the work is done well, it can both enrich your quality of life and increase the value of your home.
However, the planning stage is crucial. The most important thing is to protect your investment and add value to it. You will therefore benefit from considering, in order: maintenance and repair renovations (roof, cracks), improvement (windows, insulation) and lifestyle (kitchen, bathroom).
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Buy a chalet
Many take advantage of the value and payments made on their principal property to finance the purchase of a cottage.
This is the case with Anna and Samuel. In 2015, they paid for their condo $ 250,000. They borrowed $ 225,000 and have since repaid $ 50,000. Good news, during this same period, the market value of their condo increased.
So much so that at the end of 2020, their property was valued at $ 325,000. It is therefore on the basis of this new value ($ 325,000), in addition to the $ 50,000 reimbursed, that the couple recently turned their dream of the first chalet into reality.
Inspiring, right?
Make the most of your retirement
In principle, a well-planned retirement should reduce monetary stress. In this regard, refinancing can be considered.
This strategy is also very attractive since often the property is totally or mostly paid for. And since its market value is probably greater than at the time of purchase, hundreds of thousands of dollars then become accessible through mortgage refinancing.
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Free yourself from certain debts
Mortgage refinancing is also an opportunity for many to consolidate certain debts under one umbrella, while taking advantage of much lower interest rates.
Consider in particular the interest rates for credit cards or car loans, which are generally much higher than those for mortgages.
It then becomes advantageous to collect these debts at a lower rate in order to facilitate repayment.
Invest in your broker
To fully understand the strategy and take advantage of the benefits of refinancing, Multi-Prêts mortgage brokers offer free support, in addition to an arsenal of personalized services.
These specialists have the expertise to develop scenarios adapted to your profile, your situation and your aspirations. They know, for example, that some financial institutions are more open to self-employed workers, while others are more inclined to support a major renovation project.
Together, and in peace of mind, you will be able to benefit from mortgage refinancing, in addition to relying on a mortgage broker who will accompany you and who will shop for you on the best market conditions, according to your financial and professional reality.
It just goes to show that exchanging with humans still pays off!
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Ready to take action?
Take the time to properly plan the renewal of your mortgage a few months before the end of its term and discover all the possibilities it offers you.
Take the opportunity to ask your Multi-Prêts mortgage broker advice on mortgage refinancing strategy. And keep dreaming about your projects!
Survey
Take advantage of this favorable mortgage market
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Start renovations before the construction holidays
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Financing the start of the new academic year
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Can’t tell, we follow the market closely
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Your project could soon become reality! Let us know when you’re ready or visit our site for more information at multi-prets.com! —-–
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