Refinancing is the process of paying out your existing mortgage to setup a completely new mortgage on your property. Specific reasons why you might consider refinancing include lowering interest rates, altering amortization or other mortgage terms, debt consolidation, financing investments, the purchase of another property, home renovation or even financing your child's education. Medley Mortgages can provide you with the technical expertise to assess your needs, the costs involved and provide you with a comprehensive analysis to make sure you are making an informed decision when considering refinancing.
The idea of refinancing is to put the equity in your home to work providing access to additional funds. You can unlock up to 80% of your home's value with the help of Medley Mortgages. To access these funds you can choose a variety of options like: increasing your first mortgage; negotiating second mortgage; or, taking a secured line of credit. When the funds are secured against your property, they are available at much lower interest rates helping you save money.
Reasons to Refinance
Debt Consolidation- consolidating debts from various sources into one single payment will decrease your interest costs, and decrease your monthly payments, and enhance cash flow. It's a win-win-win scenario. If your consumer debts have gotten out of control this is a great solution. Better than paying exorbitant credit interest rates, you can secure the debt against your home a much lower rate and amortize it over a fixed period of time.
Financing a Renovation - if you are undertaking a major renovation, it might be easier and less painful to use your home's equity rather than negotiate a high-interest, unsecured line of credit or, even more costly, using your credit cards to finance the work. Why pay more than you have to?
Financing an Investment - this option puts your money to work for you. If done properly you can purchase an investment or do a debt swap and make the funds tax deductible. For high income earners you can cut the cost of after-tax interest drastically if it is setup properly.
Financing Another Property - you can use your home's existing equity as a down payment for an additional property, or potentially to purchase that dream cottage or retirement property down south.
Refinancing your home is definitely an approach worth considering, but not without a comprehensive analysis of the costs and a review of the options. Medley Mortgages would be pleased to help you and calculate the costs involved and the potential savings and/or benefits you would receive. Our goal is to help you make the most informed decision possible. For more information or to speak directly to a mortgage consultant click here.