A: Mortgage refinancing involves replacing your current mortgage with a new one, often to secure more favourable interest rates, better payment terms, stretch out your amortization or to tap into your home's equity. This strategic financial move can significantly lower your monthly payments, reducing the overall cost of your loan. By refinancing, you might be able to switch from an adjustable-rate mortgage to a fixed-rate mortgage, providing stability and predictable payments. Additionally, accessing your home’s equity through refinancing can provide the funds needed for home improvements, debt consolidation, or other significant expenses. Overall, refinancing is a powerful tool for enhancing your financial flexibility and achieving long-term savings.

A: Mortgage refinancing is our expertise, and we're dedicated to guiding you through every step. The process begins with an application, which can be completed online, over the phone, or in person. We'll conduct a thorough review of your details and application, then provide you with an analysis highlighting the potential benefits of refinancing your mortgage. Once we've determined the best path forward, we'll collaborate with lenders to secure your new mortgage approval. We'll also coordinate with your current lender and legal representative to ensure a smooth closing and payout process.

A: The longest part of the process is often the time it takes for you to gather the necessary paperwork for your mortgage refinance. Once we receive the requested documents from you, we can usually provide an indication of the best path forward within 24 hours. After that, we will submit everything to the lender and typically secure an approval within 48 hours. Once we have the final approval, it generally takes about 2 weeks to close the refinance and disburse your funds. I advise clients to expect the entire process to take about 3-4 weeks from start to finish. However, if needed, we do have ways to expedite the process.

A: When you refinance your mortgage, we typically use a company called FCT (First Canadian Title) to handle the closing. However, in some cases, you have the option to close with a lawyer instead. The benefit of closing with a lawyer is that the process can be faster, but it is also a couple of hundred dollars more expensive than using FCT. FCT typically charges about $700 for closing a refinance. Additionally, FCT offers the convenience of signing the final paperwork at your home and at a time that suits you, whereas most lawyers require an in-office appointment.

A: In Canada, when you refinance your mortgage, you can access up to 80% of the value of your home. This means that the maximum amount you can pull out is 80% of your home's value, minus the amount you currently owe on the mortgage.

For example, if your home is valued at $500,000, you can access up to 80% of this value, which is $400,000. If you currently owe $300,000 on your mortgage, the amount you can potentially pull out through refinancing would be $400,000 (80% of the home value) minus $300,000 (current mortgage balance), which equals $100,000.

A: A fixed-rate mortgage has a consistent interest rate for the life of the loan, providing predictable and stable monthly payments. This stability makes it easier to budget and plan for the future. In contrast, an adjustable-rate mortgage (ARM) has an interest rate and payment that can change periodically based on the prime rate at the Bank of Canada.  Choosing between a fixed-rate mortgage and an ARM depends on your financial situation. Fixed-rate mortgages are ideal for long-term stability and predictability in payments, while ARMs may be beneficial if you can withstand payment fluctuations that may come. 

A: In most cases, an appraisal is necessary when refinancing your mortgage to determine the current value of your home. However, it is not always required. If an appraisal is needed, the cost will be at your expense and is typically around $450.

A: When contemplating mortgage refinancing, it's crucial to take several factors into account to ensure the decision aligns with your financial objectives and circumstances. Begin by evaluating your financial goals. Whether you aim to reduce monthly payments, minimize interest expenses, or access equity for significant investments like home renovations. Next, assess the prevailing interest rates to determine if they are favourable compared to your existing mortgage terms. Additionally, factor in the costs associated with refinancing, appraisal fees, and closing costs, to gauge the overall financial impact. Consider your long-term plans for homeownership as well; if you anticipate moving in the near future, the benefits of refinancing may be diminished. Seeking guidance from a mortgage professional can provide valuable insights tailored to your specific situation, aiding in the decision-making process and ensuring you make a well-informed choice that serves your financial interests effectively.

A: While your current mortgage rate is indeed impressively low at under 2%, there are a few factors to consider when thinking about refinancing. Firstly, we'll evaluate whether maintaining your existing rate while adding a second mortgage is advantageous. We'll look at the potential benefits of this strategy and determine if it aligns with your financial goals. Alternatively, we'll also assess if paying out the lower interest mortgage might be a smart move. By consolidating your existing debts, you could potentially save on overall interest payments. We'll dive deep into the math to see if this approach makes sense for your situation. In short, we'll handle all the nerdy math to ensure we make the most informed decision moving forward, tailored specifically to your financial circumstances and objectives.