Refinancing & Debt Consolidation

There are many reasons why you might want to refinance, or increase your existing mortgage - to consolidate debt, to finance improvements to your home, kids college tuition or investing for retirement. There are many factors to consider when refinancing your mortgage.

1. Refinance using equity in your home to consolidate other debt or do renovations and home improvements

2. Refinance for the purpose of combining existing debt or breaking a closed mortgage to transfer to a different lender

Debt Consolidation – we can help you to:

• decrease credit card debt and interest

• simplify monthly finances

• avoid filing bankruptcy

• lower and consolidate monthly payments

• eliminate late charges and over the limit fees

• help manage and improve  credit rating

• eliminate creditor harassment

Most unsecured debt is priced by your bank at a higher rate than your mortgage in order to compensate them for the higher risk of loss if you default. For many people it only makes sense to use available home equity to pay out this debt, as it typically reduces interest costs significantly. If the total of the existing mortgage and the debt to be refinanced is less than 75% of the value of your home, and you qualify in terms of income and credit standing, refinancing your first mortgage should be very straight forward.

Renovations & home improvements

If you want to spend a significant amount of money on improving your home, you may be able to take out a lot more equity than you realize. Mortgage insurers, such GE Capital and CMHC, will insure new mortgages which are "topped up" for this purpose, and the total of your current mortgage and the new funds exceeds 75% of the current home value. Of course, if the total requirement is less than 75% of your home's current value, you should have little trouble getting the additional funds you need.

Solutions for Homeowners:

The Home Equity Solution - If you have equity in your home this is often the least expensive money you can access. We can find home-equity solutions for you. Contact us now to have us show you the best options available. The savings can be significant! 

Combining existing mortgages

If the combined mortgages will result in one "high ratio" mortgage and none of the mortgages you're combining were ever insured, you may be required to pay an insurance premium. You need to look closely at the total savings the combination will give you, in order to determine whether this is financially worthwhile.

In these cases there is one critical consideration which causes the failure of many such refinances. The new mortgage often requires a fraction of the cash flow previously needed to service the now consolidated debt. Many who go through this process not only absorb the cash flow savings into an improved lifestyle - they either re-incur debt that they paid out, or incur debt for which they now qualify - or both. It is important to approach such a consolidation/re-combination of obligations with the clear and focused goal of applying all savings toward paying down the mortgage. Otherwise, the new mortgage will be a burden, rather than a solution.

Breaking a closed mortgage to transfer to a new lender

Many closed mortgages have the feature that allows the balance to be paid out with a penalty after a certain time has elapsed on the mortgage. Check the "prepayment" clause in your mortgage to determine your own situation, or better still, call your institution and ask them the cost of paying out in full. You need to look closely at the total savings the transfer will give you, in order to determine whether this is financially worthwhile.

Credit Repair

Can I repair my own credit? - Yes, most people, however, find that they do not have the time, persistence, knowledge, or patience to. Most choose to have a professional handle the debt consolidation process instead. Let one of our agents help you repair your credit.

Bankruptcy

We recommend debt consolidation rather than bankruptcy. Filing for bankruptcy has very serious consequences. Once you have filed for bankruptcy, your credit bureau will carry this record for at least six years –making it very hard for you to re-establish your credit. Additionally, many of Canada’s lenders will never loan you money again if they suffered a loss as a consequence of your bankruptcy filing. In the vast majority of circumstances, the best course of action is to consolidate your debts, lower your monthly payments, and begin to get control of your finances.

Contact us to discuss your individual requirements, we’ll listen closely to your borrowing needs and after being personally reviewed by one of our agents, we will shop the market for the very best terms and rates available to help you achieve your goals.

Apply on line now OR Call our office today at 877-771-2378.