A Step-by-Step Guide
Evaluate Your Current Mortgage
Assess Your Financial Situation
Determine Your Refinancing Goals
Identify why you want to refinance. Whether it’s reducing monthly payments, shortening (or increasing) the amortization, paying off higher interest debts, or accessing home equity; clarifying your objectives will help streamline the process.
Gather Necessary Documents
Discuss Lenders, Products, Rates and Options
I often find what my clients think they want in a mortgage and what they need are 2 very different things. We’ll explore various lenders and their offerings based on your mortgage needs.
Ontario’s diverse mortgage market offers different rates, terms and products. Look beyond the interest rate – Is your goal for a lower monthly payment now interest rates have increased? Then maybe we need to increase your amortization to maintain a manageable mortgage payment.
Is your higher interest debt out of control and never getting paid down? Consolidating them into your mortgage could save you huge amounts of interest.
Underwriting and Appraisal Process
Receive and Review the Commitment
Closing the Deal
Once satisfied, we proceed to closing. We’ll sign the paperwork, but the closing date could be a few weeks, to a few months in the future. If at any time before closing I can get you a lower rate, I absolutely will. On closing day your lawyer will payout your current lender, as well as any debts you may have consolidated into the mortgage. If you did an *equity take out, those funds will be provided to you here too.
Communicate with Your Mortgage Professional (That’s Me!)
By following this ‘What to Know About Refinancing Your Mortgage’ step-by-step guide and consulting with a knowledgeable mortgage professional, you can navigate the refinancing process smoothly. Remember, clarity and informed decisions pave the way for a successful mortgage refinance.
Tim Ward, Collingwood Mortgage Broker.
*Equity Take Out
Accessing equity for other purposes. Eg. funding renovations and repairs, as a down payment on a second property, funding investments, or anything you may want to borrow funds for.
