refinancing edmontonMortgage Refinancing in Alberta

Most homeowners who have been in the market for a while, have a significant amount of equity in their homes. Due to large increases in values over the past number of years, homeowners are sitting on a lot of equity. Unfortunately many of them are also sitting on a significant amount of debt. Refinancing your mortgage in Alberta, can put your financial house back in order by giving you one easy payment.

Mortgage refinancing rates in Edmonton are very low, and the process is quick and easy. When you combine this with the great service offered by, it’s the perfect solution to lowering your monthly housing costs. Stop feeling overwhelmed by debts and payments, let us come up with a refinancing plan to let you start living again. If you have equity in your Alberta home, we can help!

Refinancing rates are at their lowest levels in our lifetime, missing out would be a huge mistake. Lower mortgage rates obviously mean lower payments. Take advantage of this by increasing your savings, or pay your home loan off sooner. For those who have more debts than assets, right now is a great time to turn around your financial situation. Cheap money can be a great tool when used properly.

A Refi Doesn’t Have to be for Debt Consolidation

Refinancing options are not limited to debt consolidations. We also refinance for asset enhancement, home renovations, vacation properties. Many of our clients also do refi’s just to lower their interest rate or payment. Your mortgage is a big part of your overall financial plan, make sure it is working for you and not the other way around. If you would like easy access to your equity down the road, we can set you up in a HELOC. The options are limitless when you have access to so many lenders and products in the Alberta marketplace.

The great thing about refinancing with a HELOC is you have better control of the funds to spend them on your time frame. If you know you want to make a large purchase, but you are not quire ready to buy or you haven’t found what you are looking for, a line of credit is ideal. There when you need it, costs you nothing when you don’t. Of course if your debts need to be paid to qualify, then the funds will need to be used at closing.

How Much Lower Does the Rate Have to Be for the Refi to Make Sense?

This is a question we get a lot, and it can be a tough one to answer for a number of reasons. First off, the banks have made it harder to refinance their mortgages by increasing their penalties so it doesn’t always make sense (if you are stuck with a fixed rate big bank mortgage). Secondly, how much debt or other obligations are we eliminating and what kind of rate do they have on them? Lastly, what is piece of mind worth knowing your payments are at a much more manageable level? All questions we need to answer on top of the simple question of what is your rate now.

Generally, your rate should be .75% or close to it, in order to save a decent amount of money. This however is only applicable if there are no other debts/factors involved in the decision. It’s always best to work the numbers on your refinance with one of our Alberta mortgage brokers however to know for sure.

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Why Refinancing Your Mortgage Makes Sense

Real life example:

You currently have a 300k mortgage, with payments of $1800/month. The rate is 3.5%, and your amortization is 18 Years. On top of your mortgage, you have a $20,000 car loan with payments of $450/month, and unsecured loan  for $15,000 with payments of $375/month. Lastly, you are carrying balances of $20,000 on credit cards with a 3% repayment of $600/month. Needless to say, you are feeling the pinch.

Before Your Refinance

Current Mortgage Payment (300k) 1800/month
Car Payment 450/month
Credit Cards (20k) 600/month
Unsecured Loan 375/month
Total Payments 3225/month

In our new mortgage refinancing scenario, we are going to roll the 55k into the mortgage and add in the penalty and legal fees so you are not out of pocket. With a rate of 2.59%, and a 22 year amortization, your total new payments would be $1787/month. You can now take that additional $1428/month and pay down the mortgage, start a savings program or have money left for vacations; it’s up to you. This is why refinancing makes sense!

After You Refinance

Current Payments 3225/month
New Mortgage (360k) 1787/month
Car Payment 0/month
Loan Payment 0/month
Credit Card Payments 0/month
New Total Payments 1787/month

It’s apparent from looking at this typical real life situation, a refinance can greatly change your financial outlook. What would you do with all the extra money you save every month? It’s a great problem to have, one would love to help you facilitate.

Talk to one of our Alberta mortgage specialists today about your refinancing options. Get your equity working to assist you in attaining your financial goals.