Refinancing/Debt Consolidation
A mortgage refinance is different from a renewal because it can be done anytime during the mortgage term by paying the existing lender an interest penalty. Many Canadians refinance their mortgages to pull some equity out to pay off higher interest credit cards, loans or to finance home improvements.
By refinancing to pay out other debts, you can significantly increase your cashflow on a monthly basis. For example:
| Before Refinance | After Refinance | ||
| Mortgage Payment (140,000@ 5.75%) | $875.03 | Mortgage Payment ($190,000@3.89%) | $988.14 |
| Car Loan ($30,000@7.29%) | $510.00 | Car Loan- Paid off! | --- |
|
Credit Cards (20,000 @ 18.95%) |
$600.00 | Credit Cards- Paid off! | --- |
| Total: | $1985.03 | Total: | $988.14 |
In this example there is almost a THOUSAND DOLLARS difference a month in payments, not to mention that all the high cost credit card and loan debt is now consolidated into a low interest mortgage. We may be able to do the same for you; APPLY NOW to find out.