For many Canadians, their home is a repository of wealth.
Home equity can build up nicely over time just by chipping away at a mortgage payment and through the natural increase of home values. Accessing home equity through a refinance (min 20% home equity) has for years been an easy, low-cost way to get needed funds. Various new mortgage rules and the stress test has made refinancing a little more complicated, but it still remains a strategy that makes good financial sense for certain homeowners that qualify. Here are five reasons why:
1. It provides a fresh start: If you have too much high-interest debt, you may be able to roll everything into one manageable monthly payment on a low-interest mortgage. Think of it as a a financial re-set- you could potentially save thousands of dollars in interest and pay that debt off quicker than you could if you just continued to make minimum monthly payments on your credit cards.
2. You’ve found your dream home: If you’ve found the perfect cottage, chalet, or the retirement home of your dreams, refinancing may be the way to make that purchase happen now if you’re not quite ready to sell your primary residence.
3. It’s finally time to renovate: Renovating your home is often a less expensive option than moving. And the right renovations can improve the quality of your life and increase the value of your home!
4. It’s all about wealth building: A rental property can give you a great wealth building opportunity and a source of retirement income. Or you may want to invest some of those funds as well.
5. We forgot to think about those large expenditures: You may be able to get the funds you need now for major expenses such as college tuition, a wedding etc. It’s also a much better strategy than loading it all onto high-interest credit cards!
We have access to dozens of lenders, including alternative lenders that are not subject to the new rules and have less stringent qualification guidelines. If you are interested, I can provide you with a personalized analysis so you can determine whether a refinance makes the most sense for you and your family. My job, after all, is to help you pay down debt, build wealth, create financial security, but most importantly, enjoy life to the fullest!
CLICK HERE to see if you qualify for a refinance today.