Equity solves a cash-flow problem, or it delays it. Pulling debt into the mortgage cuts the payment. But take a balance you’d clear in three years and stretch it to twenty-five: total interest goes up.
Know the total cost first
Compare the penalty, the fees and the new term with the monthly saving. Divide the penalty by the saving. If you get more than the months left in your term, you’re paying to lose.
Plan for what comes after
The new payment has to be livable at the next renewal, not just this month. Ask what it looks like if rates are higher when the term is up.
Documents to gather
What the lender will ask for.
Balance on the current mortgage
Property value
Debts or project to finance
Mortgage penalty
New monthly payment
Equity available
Frequently asked
Which documents should I gather?+
Your last two notices of assessment, recent pay stubs, an employment letter, three months of bank statements and proof of your down payment. Add a list of your debts with balances and monthly payments. The sooner these are ready, the more realistic a short financing window gets.
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.
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.
