Talking more about your mortgage questions!
This week we talk about refinancing your mortgage – here, we offer 5 reasons why you should consider refinancing your mortgage!
Below, we talk a bit more about your weekly mortgage questions!
Don’t feel like watching? Find the full transcript below!
5 reasons why you should consider refinancing your mortgage
[00:00:00] Hey, guys, join me for five reasons why right now is the best time to refinance your mortgage. Let’s go.
Interest rates are at historic lows!
[00:00:06] Coming in at number one is the most obvious. Mortgage interest rates are at historic lows. And as you can see, this red line going across shows the 2-percent threshold. And in 2020, this past summer, we broke that two percent threshold. So with rates so low, now’s a great time to snag a low rate and lock yourself in for the next five years. Therefore, making sure that you’re paying the lowest amount of interest possible.
There are great offers in the market
[00:00:31] Reason number two is to take advantage of some of the great offers in the market right now. Mortgage lenders are all vying and competing for your business. And so what they’re doing is they’re making offers to pay for your legal fees, pay for your appraisal cost, pay for some of the discharge fees to exit your existing mortgage.
Now, that doesn’t mean that you’re going to find a lender to pay for your penalty to exit your existing mortgage, but you will find lenders who are going to cover some of those friction costs. So there are a lot of offers out there in addition to the great rates. And now is a great time to take advantage of.
Save money, even after penalties
[00:01:09] Number three, we got to talk about those damn penalties, depending on what type of lender you have and where your current interest rates are. The penalty may literally make you fall out of your chair. They’re quite shocking sometimes. The good news is, is that the cost of the penalty can be offset against these historically low-interest rates. Now, the good news is, is that we can roll the penalty cost into the new mortgage. So it’s not an out of the pocket expense. There’s a great opportunity right now to do this. And we’ll talk a little bit more about it at the end of the video.
An opportunity to consolidate debt
[00:01:42] Number four is to consolidate that household debt. The pandemic has hit us all and we’re seeing a lot of households carrying credit card debt, line of credit debt, car loans, even loans to family, and is a real psychological burden carrying all of that at high-interest rates. So right now, we have those low-interest rates. We have the penalty being offset by the lower rates. It’s a great chance to consolidate it all together. This is going to go a long way to helping household cash flow and take that pressure off, especially with the amount of uncertainty that we have due to the pandemic and the ongoing COVID situation.
Considering a renovation?
[00:02:20] And number five is rolling in renovation costs. And I know you want to renovate. I was just at IKEA yesterday. The shelves were empty. It’s unbelievable. I’ve never seen anything like it. And obviously, with the pandemic, people being at home, people being confined to four walls, changing space is really important. So, there are a lot of clients that we’re working with who are looking to roll in renovation costs and with low-interest rates right now, it is a perfect time to do it. We’ve got unique products with lines of credit that allow and facilitate a real working budget for a significant reno.
[00:03:00] Guys, thank you so much for making it to the end of the video. If you want to explore whether refinancing is the right thing for you, two things you need to do. Call your existing lender to find out what your penalty is, and then book a call with me to run through the math, to do a deep dive into your specific circumstances.
[00:03:18] My name is Chris Molder. I’m the owner and principal broker of Tridac Mortgage on the Danforth in Toronto. The door’s always open. Reach out anytime.
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