(587) 414-0812 josh@mortgagesforless.ca

      On Wednesday the Bank of Canada included in its release that they have not changed the overnight rate which is currently 1.75%. This has been the rate for the last six months (October 2018) and speculators expect it will remain unchanged until late this year or early in the next.

      Rates have been historically low for quite a while and everyone expects them to start making their way up again within the next year. If your mortgage term is almost over you’ll most likely be able to get a rate that is lower than the one you have right now. If your mortgage isn’t up for renewal any time soon, it may be worth it to break your mortgage and refinance. This means closing the mortgage you already have and opening a new one, most often with a new lender. Doing this gives you the chance to save some money by decreasing the amount of interest you pay. Breaking your mortgage does come with fees and charges, but your new lender is often willing to pay them for you or to roll them into your new mortgage. If refinancing means you’ll pay less over the course of your loan, it’s worthwhile to do it.

      The best way to refinance is to start with a mortgage broker. They will be able to give you the details on what several lenders are willing to offer, including offers your own lender might not tell you about.

      Refinancing not only allows you to get a better interest rate or monthly payment, it also gives you the chance to access the equity in your home and to consolidate your debt. Equity is usually access through a home equity line of credit (HELOC) and unlike other loans only the interest is due each month. This means that if you have an unexpected financial burden to shoulder you won’t have to worry about large monthly payments until you have found your footing again. Consolidating your debt is also helpful if you have other high interest payments you’re trying to grapple with each month. Consolidation means you’ll be able to make smaller more manageable payments and worry less about making ends meet between paychecks.

      Presently, if you are considering refinancing our brokers can offer you a fixed mortgage rate of 2.99% and a variable mortgage rate a fraction lower. With interest rates bound to go on the rise in the near future now is a good time to lock in your rate. To get started or for more information contact us today.