Methods of Mortgage Refinancing in Toronto

There are a variety of reasons why you may wish to refinance your home.  These include wanting to free up some funds for a project such as a renovation or purchasing a second home.  An alternative is for a business start-up or even to fund an unexpected and costly illness.  Whatever the reason it is a big decision to decide to refinance your own home.  The risks include losing the property if you are unable to meet the agreed payments.

Another reason for mortgage refinancing in Toronto is to locate a better deal and pay your mortgage off quicker.  There is an increase in the number of people who list being mortgage free as one of their primary goals.  

Whatever the reason for your refinancing it is best to enlist the help of a professional broker.  OE Mortgage is one firm that offers expert advice and assistance when you are looking to complete a mortgage refinancing in Toronto.  Their knowledge and expertise can help to ensure you get the best possible deal.

There are several options when it comes to refinancing:

The Broker

You can choose to utilize the services of a broker.  This will undoubtedly reduce the time you spend looking for a good mortgage deal.  However, it is important to be aware that some brokers are attached to specific lenders or prefer certain lenders as they pay higher commission rates.  You may need to compare two brokers to ensure you are getting the best deal as well as being aware of what is already available on the market.

The Direct Approach

An alternative is to approach lenders yourself and request their best deal.  This can often provide a good response if you try it with your current mortgage firm; they will not wish to lose your business.  This approach is more time consuming but you may feel more in control of the process.

Increasing your deposit

If you have additional savings you may find it useful to increase the down payment on a refinancing deal; effectively increasing your equity and decreasing the loan amount.  Of course, if you adopt this approach you must retain enough capital to deal with any unexpected issues.   If you do not then you may find yourself borrowing to cover an emergency which will negate any savings made.

Linking to Current Account

Some mortgages will allow you to link your current or checking account to your mortgage account.  Any balance in your account will reduce the amount owed on your mortgage; effectively reducing the amount of interest you are being charged and reducing the term of the loan.  This can be a valuable tool and worth looking into when choosing to refinance.

Pay Weekly

It is also possible to take a refinance deal which allows you to make repayments every week.  This effectively reduces the balance of your loan quicker and has a knock on effect on your interest charge; again saving you money even whilst you are refinancing!

Additional Payments

Finally many mortgage deals allow you to make one payment a year, within set limits.  This will reduce the amount of capital you owe and reduce the life of the loan or allow you to access better refinancing deals.  If you receive a regular bonus this option is worth considering.