Mortgage Refinancing in Vaughan, Ontario Made Easy!

Reasons why you choose a mortgage refinance with bad credit

Financial decisions stem from needs, evolving goals, and changing life circumstances. Reasons for considering a mortgage refinance include seizing financial opportunities and adapting to new goals.

Debt consolidation

Debt relief programs abound as people seek financial solutions. Among them, debt consolidation via mortgage refinancing stands out. By consolidating debts into your mortgage, you tap into home equity. This saves you from adding to your debt and potentially avoids drastic measures like proposals or bankruptcy. Preserving your credit is vital, especially for a credit score of 700+ which offers benefits like lower rates, savings, and future financing opportunities.:

1. Better interest rates
2. Savings
3. Better options
4. Doors open for future financing

Low-interest rate in Vaughan

Whichever way you look at, breaking your mortgage contract because you can get a lower interest rate will save you money down the road. This happens when the housing market and even the economy is doing good while resulting in lower interest rates. It is not uncommon for homeowners to choose mortgage refinance in Vaughan and to take advantage of it. Keep in mind that saving on interest rates will mean more money in your pocket.

Investment situations may come up in Vaughan

There will be times when you might come across an investment opportunity that you feel will pay off in the long run. When this happens, refinancing your mortgage might just give you that extra funds you need to take advantage of that investment opportunity. You may not want to miss out on the opportunity; therefore, exploring mortgage refinancing could be the best option. I always say, ‘Make your mortgage work for you; don’t work for your mortgage.

Higher education for the children

Concerned about high college costs? Tuitions can be steep, costing tens of thousands. Parents often turn to mortgage refinancing for help. This aids older kids with education and expenses, given limited Canadian financial education support.

Home improvement

Home improvements are inevitable, driven by love for your house or future selling plans. Quick repairs are key, whether out of affection or investment foresight. But costs can surge if not budgeted. Refinancing can provide necessary funds for repairs and maintenance, safeguarding your home’s value and your budget.

Mortgage Refinancing with Cash-out

Equity extraction isn’t limited to debt refinance; it’s used for various purposes. From vacations to investments or aiding family, homeowners explore this option. Seniors too may tap into property equity for enjoyment, family support, or other needs.

Types of mortgage refinance

When you start to look into refinancing your existing mortgage, there are about three main things you need to be familiar with. It goes without saying that I would be walking you through each and every one of them in detail but here is an overview about them.Schedule a call with me

Rate-and-term refinance in Vaughan

The “rate” signifies the interest, while “term” is the covered period. Common terms include 6 months, 1, 2, 3, 4, 5 years, with fixed rates. Rate-and-term refinance adjusts rate or term, or both. Example: shift from 15-year to desired term.

Mortgage Refinancing Bad Credit in Vaughan

You might not qualify for traditional mortgage refinancing, even from chartered banks. Here, we step in, arranging alternative lending solutions. These offer a short-term reprieve, allowing credit repair. Caution: alternative lending can be costly. I advise following my guidance for crucial goal accomplishment, as commitment is key.

Mortgage Refinance fees you need to prepare for

Much like when you took out your mortgage in the past, mortgage refinancing will entail closing costs and other fees. Here are some of the mortgage refinancing fees to keep in mind.

Mortgage prepayment penalty – This is incurred when you refinance the entire mortgage.

You can have other options either than refinancing the whole mortgage. Some home owners may choose to take out a line of credit, a secured visa or a private second mortgage. However, there may be some restrictions.

When you choose to break your mortgage earlier than your payoff date, it will come with a penalty. The penalty will differ depending on whether you have a fixed-rate or a variable rate mortgage as well as the bank that holds your mortgage . For a variable-rate mortgage, usually the penalty is three months interest payments or the interest rate differential (IRD), whichever is higher. The IRD is computed based on the interest rate offered prior to being discounted. Some banks will charge based on the pre-discounted rates and some others based on the contract rate. We are always very cautious in relying this because every bank has different guidelines and not always understood by the consumer. This is why it is important to discuss it with your mortgage broker. You will get a better understanding from the beginning, this is why it is worth to talk to a professional to walk you through. After all, it is important to be prepared earlier than finding out when it’s too late. At that point, you may not have the options that you need to resolve your problem.

Mortgage discharge fee

Whether you are working with the same or with a different lender, this fee always applies when restructuring your mortgage. If your mortgage refinance means switching to a different lender, you need to pay for the discharge fee, usually this is all included in the closing costs. The amount differs from every bank or province and lender, but the average is anywhere between $300 to $400. This is subject to change depending on the lender.
It is to be noted however, that some banks will cover the cost and may offer a special perk.

Mortgage Registration Fee

Regardless of whether you are working with a new lender or refinancing with your current one, you need to pay this fee, this is considered part of the legal cost. This is the process where the lender assigns a new mortgage amount on the title of your property. The amount is dictated by the provincial government but it is usually about $70 and up.

Legal or attorney fees

You could also consult a real estate lawyer who will handle documents review. I can also direct you to review your new terms and conditions and get you to get clarification by the lawyer undertaking the transaction.. Take a look at what one of my previous clients mentioned about my services.

With a brief description of the financing I need to Lucia, and my general financial picture, she immediately went to work. Her short and exact interview extracted the required information from me for her to configure exactly what I needed in a few options. Her method of configuration and solutions were imbued with what is best for me base on my financial picture and my financing needs. All the logistics were effectively and efficiently put into effect by Lucia to get an appropriate financing deal done in the shortest time. Lucia kept her monitoring eye and updated me regularly on all the flow of my cycle to a done. This is elegant service and care from Lucia and I am very pleased with her execution, service and commitment to help me get my financing needs fully handled. Thank you Lucia !! – B.R. from Vaughan, Ontario

What you need to keep in mind

I can help you simplify the whole mortgage refinance process. However, to better prepare yourself throughout the whole process, here are a few things you need to know about:

Market evaluation in Vaughan

This basically refers to the market in your areas since you are refinancing to have better payment options. Timing is crucial in your mortgage refinance plans. I can help you understand the market and we can identify if current rates are beneficial for you. Take a look at one of my previous clients.

We have been dealing with Lucia since 2008 and we didn’t have any issues with her. She is very accommodating and listens to our needs. She explains the process thoroughly to us and answers our questions well. She comes highly recommended.”
A.T, from Toronto, Ontario

Putting relevant documents together

Do you remember the first time you took out a mortgage? If so, the documents needed would be quite similar. You might remember that these includes pay stubs as well as tax documents, in a nutshell, proof of income. Having the correct and current proof of income is a crucial component in the quality and speed of the transaction.

• Proof of income in the form of T4s and Notice of Assessment or NOA. Your NOA is a statement sent out by the Canada Revenue Agency detailing income and taxes paid.
• Proof of employment in the form of an employment letter from your current job as well as pay stubs.
• Secure a copy of your mortgage statement showing your balance as well as the terms of your loan.
• Be aware of your credit score as well as your current assets and debt obligations.
• Property taxes confirmation.
• Current home fire insurance.
• Self-employed individuals will also need proof of self-employment. The length of this will depend on the type of lender funding the transaction.

The idea of a mortgage refinance process is to help you gain a better financial advantage by using your home’s equity. It might seem to be a simple enough process but it can start to get overwhelming especially when you dive into the whole process. This is where I can come in and help you from start to finish while taking the stress and pressure off. Let me leave you with a testimonial from one of the people I have had the honour or helping for over a decade.

The idea of a mortgage refinance process is to help you gain a better financial advantage by using your home’s equity. It might seem to be a simple enough process, but it can start to get overwhelming, especially when you dive into the whole process. This is where I can come in and help you from start to finish while taking the stress and pressure off. Let me leave you with a testimonial from one of the people I have had the honor of helping for over a decade.

I have used Lucia about 4 times within the last 10 years. I wouldn’t go anywhere else. Not only does Lucia provide excellent mortgage advice, but her knowledge and experience make her an excellent sounding board on decisions. Her admin work is top-notch. If she says she’ll get the job done, she will.
M.O. Ontario

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See what my clients say.