April 20, 2021 SEP Dev

How Real Families in the GTA Saved Money with a Mortgage Refinance in 2021

Lots of homeowners, like you, are searching for mortgage refinancing this year – which comes as no surprise given record low mortgage rates and record high home values! Depending on your current mortgage status, a mortgage refinance is likely to help you achieve your goals sooner than later. Here are a few real examples of mortgage refinances that helped borrowers just like you.

Scenario 1: In March 2021, we helped clients with a mortgage refinance to 80% of their home’s equity. This represented over $100,000 in equity take out. The additional funds were used as a deposit toward a new construction property in Cambridge expected to be completed towards the middle of 2022. 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 1 year 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 a second mortgage. They also used some of the funds to clean up some minor credit card debt.

Scenario 2: In April 2021, 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 thanks to a mortgage refinance and the client’s credit is no longer suffering due to high utilization/late payments. Here’s the kicker – despite a now larger mortgage, 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: Just this week (at the time of writing), 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 mortgage rate. We helped these clients with their financing in early 2019 and put them on a 2-year term with a B lender due to some credit issues at that time. We promised them that with their cooperation, we’d eventually get them out of a B lender – and we did. 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 any creditor they want and are saving thousands on interest for the years to come.

 

With the ever-changing banking rules and regulations, and the most recent proposal of mortgage stress test changes (expected to take effect mid 2021), selling your current home and upgrading to larger home may be more difficult than in any of the years prior. If that isn’t bad enough, factor in financial difficulties brought on by Covid-19. But there are some really amazing solutions for you! A mortgage refinance can be useful in many more ways than we’ve discussed here. Maybe you need to refinance from a traditional bank to an alternative lender… or maybe from an alternative lender to a traditional bank. It can be used to pull out equity, to renovate your home, to help family through tough times, or to simply get a better mortgage rate.  Surely, you’d like to know how a mortgage refinance can help you, right?  Call us at (905) 455-5005.

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