Mortgage refinancing can be an effective strategy if you are looking to access equity in your home or if you are trying to lower your payments. But it is not the right strategy for everyone in all circumstances, so before you decide to refinance your mortgage, you need to understand exactly what that means and when you should do it.
Many young Canadians dream of one day owning a home. But for far too many, this goal feels like it is out of reach. Obstacles such as saving a big enough down payment, having good enough credit, and simply passing the mortgage stress test can seem like insurmountable issues. Fortunately there are ways to overcome these difficult obstacles.
The following are a few of the most common obstacles facing would-be first time homebuyers in Canada, along with some solutions to overcome them.
If your mortgage is up for renewal, you bank or lender is required to give you at least 21 days’ notice. Normally at that time, they will also include an offer for renewal. But since most Canadians just blindly accept the first renewal offer, chances are that the lender is not giving you the best rate that they are authorized to give.
Taking the time to negotiate a better rate on your mortgage renewal may seem like a hassle, but it is a hassle that is well worth it. It can save you thousands of dollars.
If you have had difficulty getting approved for a traditional mortgage from a bank, you may have heard your mortgage broker mention something called a private mortgage.