Now that you've been living in your home, there may be improvements/renovations or other expenses you'd like to consolidate into your mortgage by using the equity, a term called "Refinancing". This could be a wise financial option given mortgage interest rates are amongst the lowest loan choices and could simplify your finances and cash flow.
Improvements/Renovations
- Heat Pump
- Kitchen or bathroom upgrades
- Deck
- Flooring
- Roof
- And more
Improvements/renovations can also be added into your mortgage at time of purchase. Read my blog about Purchase Plus Improvements.
Consolidation
- Credit card debt
- Personal loans
- Line of credit balance
- Auto loans
- Student loans
- And more
Consolidation can reduce the amount of interest paid on debts over the long term, and help improve your financial picture by freeing up cash flow to be able to live more comfortably or save fore retirement.
Other Expenses
- Down payment for a second home purchase (cottage?)
- Student tuition
- New/used vehicle purchase
- Luxury item (boat, trip, etc.)
For many people, refinancing to cover other new expenses, such as paying for your child to go to college, may be the only option without taking out new loans or perhaps the addition of the new loan with other debts is not possibly financially. For example, the difference of $20,000 in new money on your mortgage makes a difference of just dollars in your monthly payment.
Does refinancing sound like a good fit for you? Get in touch anytime!
Sarah Nixon-Miller, Mortgage Broker
Toll-free Across Canada (rings direct to my cell) 1-844-315-6609
sarahnm@mortgagegroup.com