MORTGAGE REFINANCE IN CANADA

With today’s low mortgage rates, refinancing your mortgage
can be a very good option to save money. At the beginning of 2012 , refinance
rates are now at historically low levels . 5 year fixed rates can be found as
low as 3.19% while variable rates are around 2.85%. As home prices have
increased across Canada , many borrowers now have the equity in their home to
refinance mortgage and payoff higher interest credit card debts and other
loans.
The amount of monthly cash flow savings that can be achieved
with a mortgage refinance is on average $500 - $1000. This is a substantial amount of savings for
the average borrower. In general, credit cards tend to have the highest monthly
payments and interest rates, so these items should be paid off first . After
credit cards, the next items are normally credit lines, car loans, student
loans and personal loans. You can also consider using low refinance rates if you
need money for investing , home renovations , buying a car or for any other
use. Take advantage of today’s low mortgage rates for any purpose.
A good credit score will be required to qualify for a low
rate mortgage refinance. On average, the FICO score will have to be 650 or
above to get approved by most lenders , for up to 85% LTV financing. An
appraisal of property will also be required either by CMHC/Genworth or by a
certified appraiser in Canada. When submitting an application to a mortgage
broker, please use a conservative property value so the numbers are realistic.
Qualifying for a mortgage amount is usually around 5 times your gross annual
income level. So for example, if your income is $50,000 , you can qualify for
around $250,000 at today’s mortgage refinance rates.
The typical mortgage refinance takes about 1 or 2 days to
get approved and 10 – 14 banking days to close . Legal fees are normally around
$700 to close the mortgage . Appraisal fees are around $300. Considering the
amount of savings that can be achieved by paying off high interest credit
debts, refinancing a mortgage can be well worth the small fees. Have a look at
your current financial situation today and if you believe you are paying too
much for debt payments, consider a mortgage refinance.

Mortgage Refinance in Toronto

Home owners in Toronto are now refinancing their mortgages at a record pace. As of April 2011, the Bank of Canada has lowered it's overnight lending rate substantially, allowing banks and lenders to offer a prime rate of 2.25%. Both fixed and variable refinance rates are at historical lows and well below the average interest rates of the last few years. Many consumers are willing to pay penalties charged by their bank or lender to refinance existing mortgages and take advantage of lower payments and reduce interest costs on all of their debts.

Toronto and GTA areas in the last 5 years have seen a frenzy of buying activity. Home prices increased rapidly, allowing more and more equity to build up. Refinancing is one of the best options to make use of existing equity and pay off debts such as higher interest mortgages, credit cards and personal loans. By lowering monthly payments on unsecured debts such as credit cards, home owners can use the extra monthly cash flow to pay down their mortgages sooner using pre-payment options offered by most lenders in Toronto. Another popular strategy is using low interest rates and a refinance to fund renovation projects to increase property values.

To begin the refinancing process, contact Toronto Mortgage Broker Darin Bauer to discuss your existing personal financial details. I will review with you how much money can be saved in total interest costs by refinancing, as well as give you a plan for paying down your mortgage sooner. I have access to over 40 lenders and can provide you with not only the lowest rates but also a variety of products tailored to your needs. In most cases, I will be compensated by the lender chosen to fund your new refinance with, therefore not charging you any fees.

To qualify for a refinance in Toronto, your credit score is the most important factor. Banks and lenders are looking for FICO scores in the 600 plus range on average to qualify for the lowest rates . The higher your score, the better chance you will have to be approved at low rates. Other important qualifying factors will be your income & employment history as well as your loan to value ratio. Currently, you can refinance up to 95% of your homes' appraised or market value.

The average mortgage refinance can be closed in approximately 14 to 21 business days. A real estate lawyer will be required to close the transaction. The average cost of legal services in Toronto is around $800, depending on the number of disbursements and other related fees.

Choosing a Mortgage Broker in Toronto

When shopping for a mortgage it is important to consider not just the mortgage rate, but the professional advice and service you deserve to get from an experienced mortgage broker in Toronto. Too many mortgage shoppers tend to only look for the "lowest mortgage rates" while forgetting about important factors such as mortgage product terms , flexibility and pre-payment privileges.

There are many low mortgage rates available these days but some lenders will have clauses in their contracts causing large penalties & fees later on when selling your home, refinancing or when applying for an early mortgage renewal. An experienced broker can help you avoid problems in the future and give you professional advice to help you decide which mortgage products suit your needs and financial goals.

Mortgage Brokers in Toronto have a large selection of lenders to arrange your mortgage financing with. Most will have access to approximately 40 different lenders such as banks, trust companies and credit unions. As well, an established mortgage broker in Toronto will have access to many private lenders for non-conforming mortgages. An experienced broker should give you a variety of product options along with a competitive low mortgage rate and efficient service. Most Toronto mortgage brokers will not charge a fee for their service as they get compensated by the lenders.

Look for testimonials on their website to review how past clients have commented on previous services. Ask how long they have been in business to determine their level of knowledge and expertise in the industry. Many mortgage shoppers have had great experiences with a Toronto Mortgage Broker . You should feel comfortable with the advice and professionalism a mortgage broker gives you before submitting an application. A professional broker in Toronto will answer your questions in detail so you are comfortable about the mortgage application process from start to finish.

Darin Bauer is a Mortgage Agent in Toronto with Mortgage Intelligence Inc. Specializing in mortgages for home purchases, refinancing, renewals and second mortgages.

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