Refinancing Your Home

January 8, 2016

 

To kickstart the new year, RBC is raising their mortgage rates and be prepared: other banks will most likely follow. Refinancing your home may be something to look into.

 

Why Refinance?

 

– Taking advantage of equity from your home
– Getting out of debt & Debt consolidation
– Lower interest rate mortgage
– Job loss or maternity situation
– Home renovations

 

Costs

 

– Appraisal fees (some legal costs if you haven’t had a mortgage before or penalties): roughly $300-$500
– If you have penalties, it is 3 months of interest on your existing mortgage or if the interest rate differential is more, it is the greater of that
– Another option is that in the mortgage, you may have some hidden treasures like a payment holiday. If you’re in the job loss situation, you may have the option to defer your payments for 4-6 months
– Home equity line of credit can be accessed to pay only the interest amount that you are able to use
– Re amortizing your mortgage over a longer period of time with lower payments but higher interest – it can’t go beyond 25 years.

 

Seniors (55+)

 

– There is a reverse mortgage option. You can access up to 50% of the equity of your home
– There is no tax implications especially if you are on a type of subsidy

 

 

If you are seeking financial help, we are more than happy to guide you. Comment below or give us a call!

 

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(403) 460-3095

138 Mahogany Plaza SE
Calgary, Alberta

T3M 2R2

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