A mortgage refinance is when you break your current mortgage and start a new one, either with the same or a new lender. You might refinance your mortgage to get a lower rate, access equity in your home, or consolidate your debts. Breaking your mortgage may incur large penalties, so refinancing may not be your best choice.
Mortgage rates either come as fixed or variable rates. The difference between them is that variable rates can go up and down, while fixed rates are locked in for the term of your current mortgage contract.
A mortgage refinance is a major financial decision that shouldn’t be made lightly. While a mortgage refinance has the potential to save you thousands of dollars over your mortgage term, there are inherent risks associated with refinancing that you need to be aware of.
To truly understand if it’s a good idea to refinance your mortgage, you should speak to a licensed Canadian mortgage broker. They’ll be able to assess your personal situation at no cost to you, and help you understand what your options are. If you’re ready to refinance then they can also find you the best deals and guide you through the process
