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You guys are great and thank you for understanding my credit problems and helping me finance my home, most other companies I’ve seen do not offer the level of service as you guys do. I had an excellent home buying experience, and will definitely recommend you to my friends and family.

    -Jeffrey Grove, Hamilton

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Refinancing a Mortgage Print E-mail

When it comes to switching lenders, most people are unaware of the legal effects involved. When you renew a mortgage, you’re starting the entire mortgage process again. Thus, you should treat switching lenders with the same importance as you would if you were renewing a mortgage. Keep in mind that when switching lenders, even though the old mortgage is still registered on title, all the old terms and conditions registered by your previous lender will be completely replaced by those of your new lender.

Here's some important information to help you choose the right mortgage:

Today, there are numerous mortgage options available. We can help you find the best ones specific to your needs and negotiate to get the best rate for you. We know how frustrating and confusing it can be to choose the right mortgage, that’s why we do the research for you and explain the available options to you, it’s really that easy!

The following are different mortgage categories

1) Fixed-rate - 6 month, 1, 2 and 3 year (open, closed and closed-convertible) 4, 5, 7 and 10 year closed

2) Variable-rate - 3, 4 and 5 year (open, closed, closed-convertible and capped)

3) Split-term - A combination of all possible terms (6 month through 10 years)

4) Self-directed RRSP - A specialty mortgage rate within CMHC guidelines.


What terms and payment options should you choose?

Choosing terms and payment options all depends on what you want. We will assess your personal situation and find the best rate for you, specific to your needs.

Short-term risk & variable

If rates are low and stable, you can usually pay a lower rate with a short-term mortgage. Keep in mind that this is not for everyone because if the rate suddenly increases, it can have a significant impact on your payments. Before deciding whether or not this is right for you, you may want to discuss this with us.

Long-term

Any term 3 years or longer is considered "long term". Long-term rates are usually higher than short-term rates, and thus, you may not want to choose this option. However, by choosing a long-term mortgage, you won’t be exposed to rate increases. You'll know exactly what your payments will be and can manage your budget accordingly.

Split Term

A mortgage that allows you to minimize your exposure to rate increases by splitting your mortgage into 5 parts is called a split-term mortgage. With split-term mortgages, the average rate would rise or fall much more slowly. Need more information? Talk to us, we’ll be glad to help.

Prepayment options

Many lenders allow you to make a lump sum payment, usually 10% to 20%. Many mortgage products now include a "double-up and skip-a-payment" feature. This feature allows you to bank extra mortgage payments for a rainy day.

Payment frequency

Another added benefit is that most mortgages give you the option to pay your mortgage at a frequency that matches your cash flow (e.g. weekly, biweekly, etc). For more information, contact us! We’ll be glad to answer any questions and concerns that you may have.

 



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