Mortgage Refinance And Home Equity

Refinancing your first mortgage, or adding a second mortgage or line of credit can bring many benefits that you might not have thought of. There are several life and economic events that could lead you to take this decision. Here are the major ones with explanations:
 

1. Debt Consolidation 

 

In life we have many events that could lead to you having credit card debt, unsecured debt and other expensive debt. Refinancing your house can convert that expensive debt into a cheaper mortgage and increase cashflow to help you make those monthly payments. You can either refinance your current first mortgage, add a second mortgage or HELOC to take equity out of your home. 

 

2. Refinance for a cheaper interest rate

 

Rates often change in the mortgage industry, and if you're stuck in a high interest loan, you may want to see if there are cheaper solutions for you. 

 

3. Credit score improved for a different class of lenders. 

 

For example, if you currently have an alternative or private lender, and you were able to fix your credit score or add income to your file, you may now qualify with a Prime lender such as Scotiabank, CMLS, First National and RFA. (And many more)

 

4. Cash out

 

If you need cash for a new pool, kids’ education, a new vehicle, or anything you can think of, you might want to refinance your house.