Mortgage solution
Mortgage refinancing
Refinancing usually lets you borrow up to 80% of the property value, minus what you still owe. The penalty to break your current term is what sets the timing.
Use equity with a method
Equity can solve a problem or just move it. Consolidating debt lowers the monthly payment, but stretching a three-year balance over twenty-five years costs more in total interest unless you speed up repayment afterward.
Check the cost of leaving
Divide the penalty by the monthly saving and you get the number of months to break even. If that number is bigger than the months left in your term, the refinance loses money. Get the exact figure from your lender, because online estimates vary widely.
Plan the next renewal
A refinance should also set up the next step: term, amortization, payment cushion and the ability to make extra payments.
Documents to gather
What the lender will ask for.
- Current mortgage balance
- Penalty estimate
- Debt balances
- Property value
- New payment target
- Renewal or exit plan
Frequently asked
How much can I take out when refinancing?
Up to 80% of the property value, minus your current balance. On a $500,000 home with $250,000 outstanding, that is roughly $150,000. Past that threshold you need a line of credit or a second loan, at a higher rate.
When does refinancing make sense?
It can make sense when the monthly relief or the value of the project outweighs the fees, the penalties and the risk of dragging debt out too long.
Can refinancing consolidate debts?
Often, yes. But the structure has to be reviewed so short-term relief doesn’t turn into a costlier long-term habit.
Current rates
Today’s rates, with the fine print.
These rates are indicative. Yours depends on your file, the type of mortgage (insured or not) and the lender. And look at the penalty too, it matters as much as the number.
Have your file reviewed before you commit.
Have my file reviewedFinancing types
Pick the situation closest to yours.
Contact
Tell Mathieu about your project
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.
- Your request goes directly to Mathieu
- Across Quebec, in French and English
- No fee on most residential files