• Why refinance

    Why I should consider refinancing my mortgage

    As life gets harder in Canada, people choosing to refinance their current mortgages have thought of different reasons in the past year as to the traditional reasons in the past. We will cover the current market situation which is changing mortgage refinances and also review the other main reasons which most mortgage clients are familiar with. Before deciding to take equity out, please consult your mortgage broker or bank since a large pre-payment penalty may be incurred if the mortgage term is not matured.

    Newer reasons to refinance given today’s economy


    Prices have gone up so much in the past year that all Canadians are really feeling the pinch. With income stagnating, many of our clients are getting squeezed and are starting to use outside credit to somehow manage. Refinancing to take out equity for an emergency and extending their current amortization is helping them get by.

    Life goals

    A recent couple of mine just refinanced. Their goal is not to pay off the mortgage anymore. They want the extra funds to enjoy with their kids. Many of our other clients are also coming to the same realization that life is short so I might as well live for the moment.


    Some clients of ours who were in adjustable rate and variable rate mortgages have seen their payments continually go up. Anxiety and fear were kicking in. They refinanced for stability and peace of mind.

    The traditional reasons to refinance


    A recent couple with three children and one bath just renovated and refinance their home. Why? Chaos. To get into the one bath the new bath not only brought better family harmony, but also added to the market ability of the home.

    Consolidate debt

    A recent couple we worked with had over $40,000 in credit card debt. The amount of the monthly obligation, $1500. Ouch! They chose to re-look at their mortgage to improve their cash flow. Of all the traditional reasons to redo your mortgage, this remains one of the primary reasons we are seeing in 2022 and 2023.

    Your credit score has increased

    Unfortunate events and life happens. Some personal woes have been shared in our office where Kleenex has been given out in great quantity. These events not only put anguish in their lives but also affected other areas such as lower credit scores. Many of these discouraged clients showed me the true human spirit of picking up their lives. Once they turn their lives in credit scores higher, they are eager to refinance to improve their interest rates.

    Refinancing is always a good idea when it improves your life and lifestyle. Everyone is different and clients must be selfish to their needs. It’s all about you and your family.

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