You've heard the term refinancing but you aren’t exactly sure what it means or if it applies to you? Given the current economic uncertainty and the increased cost of living it’s becoming more difficult for Canadians to support their family and keep current on their debt payments. Refinancing can help you reduce debt payments and make your financial situation more manageable.
If you’re a homeowner you may have ‘equity’. Equity is the difference between the value of your home and what you owe against it; essentially equity is the portion of the home that you “own”.
There are different channels to access your home equity that you may qualify for depending on your unique situation.
Creative mortgage experts will work with lenders that are less concerned about your credit and more focused on the home’s equity when considering refinancing. These lenders may loan up to 80% of the value of your home depending on certain factors;
If the lender believes you will be able to solve your current financial issue with refinancing, they will be likely to consider the application.
Typically, if you consider what debts you currently have that you would like to pay off by refinancing, add it to your existing mortgage and if you do not exceed 80% of the home’s value you may qualify.
Refinancing can be an excellent way to save money on interest payments and reduce monthly expenses, as with any other financial decision, it’s important to get expert help and support and review all your options before you make any decisions.
If you believe you may qualify for refinancing and would like a mortgage expert from Rocket Mortgages to review your situation please use the link below to schedule a call.
If you click the link and complete your mortgage with our strategic partner, we may receive a commission at no additional cost to you.
