Refinancing

paper-clip-side-house-3 There are many reasons why you might want to refinance, or increase your existing mortgage. Maybe to consolidate non-mortgage debt, to finance improvements to your home, or to combine existing mortgages. There are many factors to consider when refinancing your mortgage.

Here's What You Need To Know:

Consolidate other debt

Most unsecured debt is priced by your bank at a higher rate than your mortgage in order to compensate them for the higher risk of loss if you default. For many people it only makes sense to use available home equity to pay out this debt as it typically reduces interest costs. If the total of the existing mortgage and the debt to be refinanced is less than 80% of the value of your home, and if you qualify in terms of income and credit standing, you should typically be able to refinance your first mortgage.
Renovations and home improvements

If you want to spend a significant amount of money on improving your home, you may be able to take out a lot more equity than you realize! We can advise you through this process. All three insurers – CMHC, Genworth and Canada Guaranty, will insure new mortgages which are “topped up” for this purpose, when the total of your current mortgage and the new funds exceeds 80% of the current home value. Not all improvements are eligible. For example, pools and spas are typical “over-improvements” which may not qualify for a high-ratio equity take-out. Of course, if the total requirement is less than 80% of your home’s current value, you should have little trouble getting the “top up” you need – regardless of the degree of luxury you plan to add.
Combining existing mortgages

Where the combined mortgages result in one “high-ratio” mortgage: if neither (or none) of the mortgages you’re combining was ever insured, but combining them results in a high-ratio situation, you’ll be required to pay an insurance premium. You need to look closely at the total savings the combination will give you, in order to determine whether this is financially all worth the while.

Where the combine mortgages result in a new “conventional” mortgage: high ratio insurance is not required. As long as you qualify with your income and credit standing, the team at Di Nardo Financial Inc. will help you achieve this quickly and conveniently.

In both cases there is one critical consideration which causes the failure of many such refinances: the new mortgage often requires a reduced cash flow needed to service the now consolidated debt. Many who go through this process not only absorb the cash flow savings into an improved lifestyle, they either re-incur debt that they paid out, or incur debt for which they now qualify or both. It is important to approach such a consolidation/ re-combination of obligations with the clear and focused goal of applying all savings toward paying for the mortgage. Otherwise, the new mortgage could be a burden, rather than a solution.

Switching Your Mortgage

Most people are unaware of the legal effect of switching lenders. When you renew a mortgage you are essentially starting the process again, discharging the existing mortgage, taking out a new one, and beginning the whole payment process, albeit at a lower principal amount. As such, you should treat this as just as important a process as the first time you arranged the mortgage. Remember your situation will most likely have changed since then, and you will require a different product with different terms attached to suit your situation.

The form that you are holding in your hand from the lender who did your previous mortgage financing (renewal letter), has a rate that probably is not as competitive as it could be. Don’t let the hassle from the first time you negotiated dictate you just signing the form and sending it back to the lender – it will most likely cost you in the form of higher rates.

The lenders count on 70% of renewals to come from clients just signing the renewal form and mailing it in – they are not forcing you – but they are preying on the human nature to embrace convenience. However, let us do the work for you – the same convenience, at a much lower cost to you and a product and term that will suit your current situation. The fact is that it is likely another lender will give you what you want at a rate you want – there are no legal implications to you switching.

Home Purchase

Purchasing a property privately or through a real estate agent can be a stressful experience. To add to the difficulty, there are many mortgage products to choose from, and you may not know where to start. As mortgage professionals, we are here to educate and guide you through the process every step of the way to ensure you receive the best mortgage product available to suit your financial needs. Repeat buyers have gone through the mortgage process before, however, this can be an overwhelming experience for a first time home buyer.

As a first time home buyer, the property you are about to purchase is probably the largest single purchase, and biggest investment decision you will ever make. Allow us to help you through the confusing maze of lender options, mortgage documentation, and terminology you will deal with through this process.

The team at Di Nardo Financial Inc. is constantly up to date with the fast changing mortgage market, and will be able to find you a lending solution that best suits your requirements quickly and efficiently, no matter the situation. With electronic access to various lenders we will ensure that you receive the best rate for the product of your choice.

To complete a mortgage application, please visit our Apply Now link or call us at 905-832-0059, and a mortgage professional will get back to you within 2 business days of reviewing your application. Upon review we may provide a mortgage pre-approval which will indicate an estimate for financing given your current situation. Furthermore, we will ensure that you understand all elements of the mortgage process before you sign anything. No surprises, no disappointments; at Di Nardo Financial Inc. we make it our responsibility to disclose everything to our clients.

Name * Please let us know your name.	Phone * Please enter your phone number.
Best day to call * Please select which day of the week to call	Best time to call * Please select best time to call you
Contact me about * Please select type of services you are looking for	I am looking for * Please select what you are looking for
Validation Code * Invalid Input

Mortgages - 1st Time Purchase, Refinance, Renewal, 2nd Mortgages

Deposit - GICs, RSPs, TFSA, RIFs

Home Equity / Line of Credit

Refinancing

Switching Your Mortgage

Home Purchase

Subcategories

Commercial Mortgage

Financial

Request A Call

Industry Associations