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.
Its law that you can only lend up to 95% LTV on a purchase and only up to 90% on a refinance. Registering on title for more than the purchase price/appraised value is nothing new, other institutions have been doing it for years. I believe that they were actually lending in excess of the value of the homes in the states at one point...
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Maryland Mortgage