There can be so many reasons why people update their mortgage but these are the ones we see the most.
Consolidation of Debt
Because mortgages are secured loans, they have lower interest rates than other sources of credit, like credit cards or personal loans. They can be a great place to consolidate your debts, reducing the overall amount of interest you pay.
You can do this by accessing your home’s equity. With refinancing you’ll take out a larger mortgage than necessary to pay off your current mortgage, then use the extra funds to pay off any other debts. This gives you one single payment to make each month, likely at a lower overall rate than the interest rates of your other loans.
Renovations & Setting Up for Investments
When refinancing your mortgage, you can choose to increase your current mortgage balance to access the lump sum of money from the amount you’ve already previously paid off. This can be used to finally do that renovation you’ve wanted for a while!
If you didn’t know, we do more than just mortgages and can help set you up with investments for you. Reach out to our team about this additional service and we would be more than happy to help you.
Also, if you have a variable rate mortgage, you should definitely look at refinancing during these unique times.
Truthfully this might not be for everyone as penalties can be high but with our team helping you, you will make an educated decision on a possible financially beneficial move for you and your family. You can even check our mortgage calculator app to run the numbers for yourself.
Is this a good time to refinance for you?
You’ll need to consider your own needs and circumstances. The best thing you can do is speak to a mortgage broker, who can give you a free assessment – do it sooner rather than later. Our team can help you calculate costs and consider different options available to you during these unique times.