• Refinancing A MortgageRefinancing A Mortgage?

    If you are considering refinancing a mortgage, please make sure you do it with a goal in mind.

    This past spring has been an interesting Spring in our mortgage refinance program, even for a veteran mortgage consultant like me. Is it because our fixed mortgage rates have been tumbling? Maybe; but I doubt it. For many of our clients, it was due to excess credit on their credit cards, lines of credit, or cars. When a client visits us at our Robert Floris’ Mortgage Architects office on the East Hamilton Mountain, we ensure we ask them 2 simple questions to start:

    1. Is the debt causing stress?
    2. What are you prepared to do with the extra cost savings?

    Reasons For Refinancing A Mortgage

    The vast majority of our clients answer “yes” to question #1. It not only affects their stress levels, but clients have told us it also has had negative consequences on their lifestyle, their health, sleeping, and in quite a few situations, their relationships.

    What Are You Doing With The Savings That Result From Refinancing A Mortgage?

    What are really interesting are the answers we receive to question #2. What will you do with the extra money per month? Again, most clients have no clue how to answer this. This is where the problem begins. Their mission should be never to visit Robert Floris or any other mortgage broker or financial institution again. Instead, they go back to their old habits and rack  up the credit card again.

    Set Goals When Refinancing A Mortgage

    We ask another simple question in the middle of our interview: who is more important than the bank? That’s easy. It’s the couple or the client. With every refinance there should be a goal that should benefit the clients. Let’s look at some refinance goals through to the customer first outlook.

    Reason To Finance Goal
    Get out of high rate mortgage Save monthly income
    Improve cash flow Put the savings into an asset like RRSPs, TFSA, savings account or stocks
    Increase the length of the mortgage For clients over 50, put the client’s savings into retirement, since paying off the mortgage may be unrealistic
    Decrease the amount of the mortgage loan The faster you pay off the mortgage, the less interest you pay
    Put in valuable renovations Windows, doors, furnaces to improve efficiency and say valuable dollars

    In order to achieve the mission of never re-financing again, we must indicate our goals and our goals must take importance before the mortgage.

    In couples hoping to restore their relationship, we encourage working on the goals together. If the couples split up, then this all means nothing. Remember your goals and mission. You begin the refinance process.

    Robert Floris is a Mortgage Broker. His office is located at 651 Fennell Avenue East in Hamilton, Ontario. If you would like to speak with Robert, he can be reached at 905-574-9200 #215. Alternatively, you can contact Robert here.

    If you would like to apply for a mortgage online, please follow this link.

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