Rolling debts into the mortgage in Saguenay: the debts paid off are named in the offer and paid by the notary. What it takes for the lower rate to actually help.
It all turns on your ratios once the debts are repaid, not today’s. A tax debt weighs more than a credit card: Revenu Québec and the CRA can register a claim on the property, and most lenders require it to be paid out of the refinance.
Documents before comparison
A list of your debts with exact balances and payments, your latest mortgage statements, and your notices of assessment. If there’s a tax debt, request the official statement of account. It’s the only figure the lender will use.
Available equity
You can generally refinance up to 80% of the property’s value, minus what you still owe. On a Saguenay home worth $500,000 with $250,000 outstanding, that’s roughly $150,000, before you factor in the penalty for breaking the current term.
Penalty and fees in Saguenay
Before comparing two monthly payments in Saguenay, add up what the switch costs: the penalty, legal fees, appraisal and the new loan’s fees. A lower payment that takes six years to pay back those costs isn’t a saving.
Debts or work financed
The debts paid at closing are named one by one in the offer and paid directly by the notary. That’s what stops the lower rate from turning into a fresh loan somewhere else.
New payment
A lower monthly payment and a lower total cost aren’t the same thing. Stretching the amortization eases the budget now and adds years of interest. Compare both numbers before you sign anything.
To prepare
What to gather.
Current mortgage balance
Property value
Debts or project to finance
Mortgage penalty
New payment
Available equity
Frequently asked
Can the file be reviewed remotely?+
Yes. Phone, email or video call, with documents sent online. We can meet in person if you’d rather, but most files get done without anyone driving anywhere.
Should I pay off my debts before applying?+
Often yes, but not always with your cash. Paying down a card improves your ratios. Emptying your account to do it weakens the down payment. You have to run the numbers on both at once.
Buying, renewing, refinancing, or something a bit out of the ordinary: tell us where you’re at, even if it’s still fuzzy. Mathieu gets back to you with next steps and the documents to pull together.
