You’ll need to understand what’s in your best interest if you’re looking at refinancing your mortgage. As your Toronto mortgage broker, we can help by supplying good information.
Following are a few tips that can help you navigate the whole process.
- Before you start, understand why you want to refinance. Maybe you could pay off your existing loan quicker with a shorter term. Perhaps you’re looking at lowering your current interest rate so your monthly payment follows suit. Some people want to switch from an adjustable-rate product to a mortgage with a fixed rate.
- There are some other considerations. For example, you should decide if you want to refinance based on the amount of equity you have. As a Toronto mortgage broker, we help people to decide what is in their best interest. Keep in mind that your lending institution will need an appraisal to verify the value of your property. You’ll need to have some equity for the refinancing process.
- You’ll need to get your paperwork together too. Bank statements over the last two months or 60 days are necessary. You’ll more than likely also need to gather up your pay stubs over the past month. Contact numbers for the places you’ve worked for the past two years are important. Your current mortgage statement and homeowner’s insurance policy will also be required.
We’re the Toronto Mortgage Broker who can help you navigate the refinancing process. There’s lots to consider including the possibility of prepayment penalties.
Three Months Interest
The exact amount is in your contract. You can be charged up to three months’ interest with a variable rate mortgage. With a fixed-rate mortgage, you can be charged the same. Or what’s called an interest rate differential.
Keep in mind that refinancing can still be financially worthwhile even with a prepayment charge.
