If you are like most homeowners, you know how important it can be to save money when you can. One strategy you may not have considered for saving money is to remortgage your home. Remortgage – or refinancing – can save you money in several ways which we will discuss in this blog.
Are you in the market for a new home? Congratulations! Here are a few dos and don’ts to help make your experience a good one:
Do get preapproved for a loan. This will give you an idea of what you can afford so that you won’t waste a lot of time looking at homes that are out of your budget. Additionally, it is important because many real estate agents won’t work with a client until they have been preapproved for a loan.
Don’t make a large purchase on credit before your closing date. Even if you have been preapproved for a loan, the lender can still change their mind if your financial situation changes. Major purchases such as a new vehicle can jeopardize your mortgage application.
Buying a home is a big decision and for most Canadians, it is the biggest investment that they will ever make. If you have decided to take to the plunge into homeownership, then congratulations! You are in for an exciting journey! Unfortunately however, that journey can sometimes feel complex and overwhelming.
The good news is that you don’t have to take that journey alone! There are many tools and resources available for potential homeowners that can help them make the right decisions.
Refinancing your mortgage simply means breaking your current mortgage and getting a new one – often at a lower interest rate. Since refinancing means your will have to break your mortgage, it also means that doing so will likely carry a financial penalty. And the further away you are from your renewal date, the higher that penalty is likely to be.
Nevertheless, a mortgage refinance can be a powerful financial strategy under certain circumstances. Here are six reasons that you might want to refinance your home mortgage.