Introduction and Reasons to Refinance
Refinancing a mortgage can be an effective strategy to save money on your monthly payments, access the equity in your home, and consolidate your debts. The process of refinancing involves breaking your current mortgage and starting a new one, either with the same lender or a different one.
There are several reasons why you might consider refinancing your mortgage. One of the reasons is to get a lower interest rate, which can save you thousands of dollars over time. Another reason is to access the equity you’ve built in your home as cash. By refinancing your mortgage, you may be able to access up to 80% of your home’s value, less any outstanding debt. This extra money can be used for investment opportunities, home renovations, or your children’s education. Refinancing can also be used to consolidate your debts. If you have a number of outstanding debts, such as a car loan, a line of credit, or credit card bills, you may be able to consolidate this debt through the variety of mortgage refinance options available.
Refinancing can also be used to change the terms of your mortgage contract. For example, you may want to extend your amortization period to lower your monthly payments. You may also want to refinance to access a better interest rate or to take advantage of low-interest financing secured by the equity in your home.
Costs Involved in Refinancing
When refinancing your mortgage in Ontario, it’s important to consider the costs involved. Refinancing involves costs like appraisal, title search, prepayment penalty costs, legal fees and disbursements, and other fees depending on the type of mortgage and lender. In Ontario, the cost to refinance a mortgage varies depending on the lender. Here are the typical costs for refinancing a mortgage in Ontario:
- Appraisal fee: This is a fee to determine the current value of your property.
- Legal fees: You will need to hire a real estate lawyer to examine your mortgage contract, register the new mortgage, and conduct a title search to ensure your property has no liens against it.
- Mortgage discharge fee: This fee is charged by your current lender to remove their name from your property title.
- Mortgage registration fee: This fee is charged by the province to register the new mortgage on your property.
In certain cases there might be additional expenses, such as lender, broker, or inspection fees, among others. In case any of the additional fees where applicable on your file, you should be informed about them way before signing any mortgage documents. Your lender and your broker should be fully transparent about any additional fees relating to your mortgage, and you shouldn’t be surprised on the closing date with anything like that.
How to Apply for Mortgage Refinancing
If you believe that refinancing could be beneficial for your situation, either by reducing your overall payments or providing you with additional funds for your plans, we will guide you on how to proceed with the application for a refinance.
Our website offers resources that allow you to apply from the comfort of your home. Feel free to talk to us at any point prior to applying, or any time while going through the process. If we receive an application that was submitted though our site, and we haven’t heard from you beforehand, we will reach out to you before we actually start processing your application. We want to ensure first of all, that it is a legitimate application, and you are the actual person that is applying, and not someone else pretending to be you.
So here is a step-by-step explanation on how to apply for mortgage refinancing through our brokerage website:
- If you are reading this, you are obviously on our site, TheBroker.ca.
- Scroll up to the top of any page. We have the button APPLY HERE showing in the upper right corner.
- If you want to know how much your payment will be, we have a mortgage calculator located next to the application link. We are using a very simple process, just enter your amounts, the rate and it calculates the payment.
- To start the application click on the APPLY HERE button.
- Register for secure access. Make sure you don’t share your logins with anyone.
- Fill out the application form with your personal information, employment details, and financial information.
- Submit your application, and allow us time to review it.
- Wait for us to contact you to verify your details, and to let you know what documents we will need based on the lenders requirements.
- Start putting together the required documents, such as pay stubs, tax returns, and statements. We will let you know how to send them to us.
Once your application has been approved, we will send you the mortgage approval documents with all the terms and conditions of the mortgage. If there are any explanation required to clarify any of the terms of the new mortgage, now will be the right time to discuss them. You will need to review and sign this document before we can proceed with the refinancing process.
After you have signed the document, we and the lender will begin the due diligence process. This process involves reviewing and confirming the documents you submitted, verifying your employment and income, and appraising your property. Once this is done, the lender will send their documentation to your lawyer with instructions, so the lawyer can perform their part of the work towards closing the transaction.
After the refinancing process is complete, you will start making payments on your new mortgage. You may also need to update your automatic payment settings if you had them set up for your old mortgage.
In conclusion, refinancing your mortgage can be a wise financial decision if your aim is to reduce your monthly payments, lower your interest rate, or access cash for various purposes.
Our brokerage website provides a secure and easy-to-use platform to apply for mortgage refinancing, and we are available to help you navigate the refinancing process and find suitable mortgage refinance options for your needs.