Mortgage refinance is simply renegotiating your mortgage contract with either an increase in the loan or changing up the repayment of a mortgage.
In many cases it’s worth breaking your mortgage, paying the penalty and refinancing your mortgage at a lower rate. Finding a mortgage with a lower rate can save you a lot of money over the life of your mortgage, making any penalty paid worth it. However this is very technical and best left up to a mortgage specialist who can assess your situation and give you unbiased advice.
There are a two ways to lower your monthly payments:
Many Canadians have used the equity in their homes when faced with a large expense that their savings can’t quite cover. You may have to cover your child’s university costs or need the money for a home renovation project.
A switch is a refinance mortgage at its essence. It is as the name suggests literally switching your mortgage from your current lender to a new one.
As a borrower, you'd switch to a new lender for a better mortgage, an adjustment to your payment, a better interest rate, an increase in financing or opening up your repayment options.
You can switch to a new lender at anytime with a penalty, considering this a switch is best utilized at the end of your current mortgage term. Although there is a penalty if you break your mortgage term before its up, the cost can be outweighed by the savings that follow a better mortgage term. We have access to lenders that will cover your prepayment penalties for switching and prepaying the mortgage before the term is up.
A refinance mortgage can be used for home renovations.
A lender will be more than willing to fund your ambition to improve your home. A home is security for your loan and given that you plan to add value to that home is exta security for a loan in the case of default.
Though a lender will not likely fund or approve a renovation that involves extreme changes or additions to a home.
A big project like adding another level to your home is a risky move for a lender, as such a project given unfinished or complications could harm the value of the home that a lender is using as security for your debt.
Having multiple debts can be a burden, refinancing can be a good way to consolidate that debt and simplify your life. Rolling your debts and loans into your mortgage can be financially strategic and beneficial.
Consolidating your debt is simply repaying debts with mortgage proceeds. Consolidation is when a debt is paid by another debt. The advantage to consolidation is that it brings a gross owed amount under one repayment and a single lower interest rate.
A refinance simply allows you to strategically target high interest debt and amounts with a payment through a replacement mortgage debt that consolidates debts under one repayment and interest rate.
Identification is used to verify your identity. While it’s a measure for preventing fraud, it’s essential for us to properly fill out your mortgage application.
It’s also a requirement so a lender can provide you with funding.
Income verification is required for your application so a lender can verify your ability to manage your mortgage payments.
Also provides essential information for us to assess your situation. Most of all helpful information to determine which mortgage product is appropriate for you.
It’s fraud if you falsify and/or exaggerate your income. Fraud for shelter is the most common form of mortgage fraud in Canada. Therefore we won’t tolerate this irresponsible and harmful behaviour.
It is important to be honest and precise with your income so that you aren’t getting a mortgage you can’t manage to afford.
A mortgage statement is simply a document prepared by your current lender and provided to you upon request. This document will detail your current mortgage.
Your mortgage statement will show:
This document is essential for the lender you apply to. As a document it allows a lender to assess your current mortgage and review your management of that mortgage.
Must show your name, property address, balance or original mortgage amount, and payment
A property appraisal is an estimated value of a home, in this case for one you wish to purchase.
Most noteworthy the appraisal is not a document that you will provide but rather pay for, as a requirement from your lender. Appraisals ordered by a lender are not shared with you as it’s their document.
This document is a cost surrounding your mortgage. While the cost can vary depending upon the location and size of the property.
The cost of an appraisal starts around $350 and can go over $500 (plus tax).
An appraisal is a requirement by a lender so they have a reasonable idea of your home’s current market value.
They use this value to assess the home before they are willing to lend against your home.
A lender will require the most recent property/tax bill statement for the property you are mortgaging.
It’s an essential document that details the property and documented ownership of the property. It also allows a lender to ensure that all taxes are paid up-to-date before financing a mortgage against the property.
A lender will require information on how much you pay for heating a month. Along with this information, if applicable, documentation about any condo fees you pay is also required.
It is required to consider the essential costs surrounding your property, it allows a lender to determine an accurate idea of your finances considering your assets, liabilities, income and property.
A void cheque is simply an unusable cheque that details your transit number and account number. It’s essential for a lender to deposit and withdraw funds from your account.
It’s an essential document that allows a lender to fund your mortgage. Also confirms the funds are in fact deposited to you, the mortgagor.
Refinancing your mortgage is no the only way to obtain extra funds. Have you considered a Home Equity Line of Credit?
Feel free to send us an email with any questions you may have about the required documents for a refinance mortgage.
We'd be happy to help!
We have a variety of useful guides that are essential and helpful for all your mortgage needs and questions. We cover everything from basic mortgage concepts to the functions and components of a mortgage to in-depth mortgage guides and strategies.
We have a variety of informative and useful pages. Take advantage of the free resources we offer with convenient bookmarks for all your mortgage information needs.
We have a few excellent options to determine what you can afford to borrow. We offer an easy to use Mortgage Qualifier Calculator. Simply input the required information and let our calculator give you an idea of how much you can afford to borrow.
If you want to get the most accurate idea of how much you can afford to borrow, contact us or fill out our online mortgage assessment form.
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There are a variety of mortgage types and purposes. Deciding on the best mortgage for you is essential to getting the most logical loan for your financial needs, goals and future.
If you don't know what you want or need in a mortgage, we can assess your finances and in consideration of your financial needs and goals, we'll provide the best mortgage and rate for you.
We can assess your situation and advise on a mortgage product that will meet your financial goals and needs into the future.
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Nick and his staff were very efficient and helpful. Nick in my opinion went above and beyond what was required in arranging my new mortgage. This has been my experience over the past 25 years when dealing with Mortgage for Less and Nick specifically.
Nick Mitskopoulos was professional, trustworthy, efficient and proactive. His expertise as a broker was evident from the moment we met him. We had encountered 2 other brokers before but we decided to go with Nick because of his professionalism and sense of ethics. He was also patient and answered our numerous questions. We definitely recommend him as a mortgage broker. Keep up the good work Nick!
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We asses your situation, advise on a mortgage product, find your best rate and provide you with options to customize your mortgage.
Nick was great to deal with. Professional, knowledgeable, polite and quick to answer any questions we had. Throughout the process from mortgage pre approval all the way through to closing day he stayed in touch making sure we had all the information necessary.
Would highly recommend Nick.
I have used Mortage For Less for all my mortgages since purchasing my first home nearly 15 years ago. From our first experience Nick has always been amazing at providing advice and negotiating great deals, and we have been a loyal customers ever since. Nick also jumped in quickly to help us work out a line of credit through our mortgage when we inquired a few years ago, and he provides interesting updates on the market. I plan on sticking with Nick for as long as I own a home.
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What a pleasure it is to do business with Nick. I have used Nick as my mortgage broker several times now and wouldn't think of using anyone else. He is knowledgeable, professional and always timely on any questions or inquires I have. He makes you feel like you are a special customer through the entire process. Nick thanks again for all you expertise and making this a smooth transaction.
Much appreciated !
It's always been a pleasure to work with you. Everything was made very easy for us even though you are in a different province. I believe I always got a great rate without me having to negotiate with several different banks. All the work was done for me. Thank you.
We provide a continued service of advice to strategically save tens of thousands over the life of a mortgage.
Our mortgage application and mortgage pre-approval are simple, straightforward and don't require much information to begin the consultation.
We have been advising on mortgages for 30 years and we've helped thousands of Canadians get approved for their mortgage financing needs.
We'd be happy to help you with your refinance mortgage.