Have high interest debt? Maybe refinancing is right for you...

Written by: Denise Laframboise
 

Why do people refinance?

  • To pay for a renovation
  • To pull cash from the equity in their home, for a second home or cottage purchase
  • To qualify for a larger mortgage amount because they plan to move in the near future
Before Refinancing

In this example the above client would have $2,882 total bill payments each month for the

items listed.

After Refinancing

We can consolidate your mortgage to one monthly payment instead of making several payments

per month. If we take the total amount they borrowed, plus an estimated $2,500 penalty to

break their mortgage early and $1,500 to cover a lawyer and appraisal costs, the total

mortgage amount is $392,500. This mortgage would cost $1,937/month. The clients are saving

$945 a month.

If the clients were able to pay $2,882 per month comfortably (as in example #1), then we could use pre-payment privileges on their mortgage to put the extra $945 on the new consolidated mortgage each month. This would save the client $85,864 in interest payments and have them mortgage-free 10 years and 8 months faster.

How to find out if this is an option for you

Please contact us if have a renovation in mind that you would like to discuss financing, or if you have some accumulated debt, a high interest car payment or credit card. We are happy to provide a calculation like the one above for your specific situation at no cost to you. All it takes is the time for a quick chat to see if the numbers would make sense for your specific situation.

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