You've heard of mortgage refinancing, but should you do it, and when is the right time? Learn about the benefits of refinancing your mortgage with Access.
Refinancing your mortgage is essentially updating the terms of your mortgage loan agreement. This can happen in the middle of your mortgage term or when your mortgage is up for renewal, by simply blending your existing fixed rate and term with current rate offerings.
There are a few reasons you may want to refinance your mortgage:
Get a lower interest rate
Having a lower interest rate means you will pay less interest, which can save you a lot of money over time. When rates are low, refinancing in the middle of your mortgage term can help you take advantage of the lower rates.
Consolidate your debt
If you have multiple loans or credit card debt, refinancing your mortgage to consolidate your debt into one payment might benefit you. Refinancing multiple debts into one can give you a lower interest rate overall and make paying off high-interest loans easier. This can be done mid-term or at the end of your mortgage term.
Get access to cash
As you pay off your mortgage, you build up equity in your house. By refinancing your mortgage, you may be able to access the equity in your home (potentially up to 80% of your home's value). Accessing your home’s equity is great if you’re looking to do home renovations and don’t want an additional loan or if you need money to support your child’s education.
Before making any decisions about refinancing your mortgage, be sure to talk to your local branch or call our Member Solutions Centre. Our staff is here to provide solutions that work for you and offer expert advice.