WHAT YOU SHOULD KNOW
To consolidate debt into your current mortgage, the government has guidelines in place that we can only access up to 80% of the value of the home in the total mortgage.
Example: $400,000 value = $320,000 max mortgage.
Debt consolidation into a mortgage is only possible if the client has already obtained 20% equity into the property.
COSTS YOU MAY INCUR
Appraisal: $300 – $450 dependent on the property.
Title change: $600 – $700.
A penalty with your current mortgage lender, all of which can be added into the new mortgage. It doesn’t have to be paid out of pocket.
These costs can be incorporated into the refinancing of your mortgage.
THE STEPS TO REFINANCING
Analysis, we will use our super nerdy system to run all of your numbers. Does it make sense for you to refinance? How much money will you save? Does it make sense for you to refinance for the long term or short term relief?
Fill out a full mortgage application, either online or a paper copy, or with us in person or over the phone, whichever suits your needs. Supply us with the documents needed to qualify the loan.
Appraisal – (not always required) dependent on property/location/type.
Sign with title company @ a place and time that convenience for you.
2 days later you will receive a bank draft for the additional money you accessed.
REASONS TO REFINANCE
- Debt consolidation.
- Investment (we even have a MIC that pays 8% annual returns.)
- Reduce monthly payment, increase cash flow.
- Gain access to funds for education.
- Long-awaited bucket list trip.
- Rental opportunity (downpayment)
- Vacation property
“THE IDEAL SCENARIO IS HAVING NO MORTGAGE AND YOUR HOME PAID, FOR BUT WE ALSO RECOGNIZE LIVING LIFE IS IMPORTANT.”
Mortgage rates are relatively inexpensive compared to borrowing costs elsewhere. Are your debt/investments allocated properly for the best financial gain in the long run?
A FEW THINGS THAT DON’T MAKE SENSE TO US.
- Paying 19% interest on a credit card when you could pay a 6th of that on your mortgage. Mortgage rates are a fraction of the 19% credit card interest rates and other personal loan interest rates.
- Having a home that is paid off, when you could be using that money and making an 8% return.
CLIENT EXAMPLE #1
These clients are refinancing to consolidate their debt into their mortgage.
CLIENT EXAMPLE #2
These clients are refinancing to obtain some payment relief/increase monthly cash flow.
When refinancing we want to make sure that it is the right choice for you. Will it be beneficial in the long term? Possibly an instant relief on your current cash flow? We will put all of your information into our super nerdy spreadsheets and help you discover your best financial options.
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