March 15, 2019 Kristen Godel

Recent Inquiry – Mortgage Refinance

We’ve been receiving a lot on inquiries about mortgage refinancing lately. Given the new rules and regulations set out by B20 on January 1, 2018 (the ever-dreaded stress test), selling and upgrading to larger home may be more difficult than in the years prior. Depending on your current mortgage status, a mortgage refinance may help achieve your goals. Here are a few examples on mortgage refinances we have completed in the most recent months:

Scenario 1: In December 2018, we helped clients with a mortgage refinance to 80% of their home’s equity. This represented approximately $100,000 in equity take out. The additional funds were used to put as a deposit toward a new construction property in Cambridge expected to be completed in 2020. This was a shorter-term strategy and allowed the clients to provide a deposit to the builder they otherwise would not have had available. The mortgage term was 2 years and will allow them to break prior to the closing of their new home completion. This refinance was less costly and more financially sound than secondary financing.

Scenario 2: In January 2019, we completed a mortgage refinance for clients who had $75,000 – $80,000 in unsecured debt (credit cards, retails cards, lines of credit, student loan). Their minimum monthly payments on all unsecured debt alone, was approximately $2000/month. All debt was cleared as a result of the mortgage refinance and the client’s credit is no longer suffering due to high utilization/late payments. Here’s the kicker – the client’s cash flow increased by $1000/month and now they’re back on track for a better financial future. This was truly a win-win for them.

Scenario 3: In the first week is February 2019, we refinanced a couple out of a B lender and helped them achieve their goal of getting into a traditional bank with a much lower rate. We helped these clients with their financing in early 2017 and put them on a 2-year term with a B lender due to credit. We promised them that with their cooperation, we’d eventually get them out of a B lender. We spent the last 2 years helping guide them to credit recovery and they were extremely cooperative and appreciative of our advice/tips. As a result, they now had the good credit scores/history to be accepted by a traditional bank and are saving money on interest for the years ahead.

A mortgage refinance can come in handy in many more ways. A refinance can be from a traditional bank to an alternative lender… or it can be from an alternative lender to a traditional bank. It can be used to pull out equity, to renovate your home, to help family or to simply get a better rate.  Ask us how a mortgage refinance can help you. Call us at (905) 455-5005.