There is no question that during the past several years, home values have increased. Depending on when you purchased your residence, the value of your home most likely appreciated substantially. Perhaps when you bought, you did not have an opportunity to add more to your mortgage because of your loan to value or debt servicing concerns, but these extra funds may have been useful for home improvements at that time. In today's market, it may be an excellent time to take advantage of your home equity to do those long awaited home improvements, or maybe consolidate all your other higher interest debt to just one convenient lower interest rate payment by considering a refinance of your existing mortgage.
Why is this a good time to consider refinancing? Lenders can now approve a mortgage up to 80% loan to value without requiring CMHC insurance (previously, the limit was 75%). If (and this is only an "if") home prices trend downwards in the future, the amount you will be able to borrow without needing CMHC insurance may be decreased. The longer you delay your refinance, there is a chance that you may have less equity in your home in the future, which may not make it possible to do a refinance on a non-insured basis.
Of course, we would first complete an analysis of your particular situation to determine if this is a good time for you to refinance. We would need to consider your individual circumstances such as, is your current mortgage locked-in? What is the penalty to get out of your existing mortgage? Is it better for you to wait until the end of your current mortgage term, or perhaps refinance with your existing lender? Whatever course of action you may take with your refinance, we are here to assist you!
About Us
The Mortgage Centre - BC Direct Mortgages is owned by Ed Kolisnyk and Shannon Brolund, a father-daughter team working together since 2000. Our Mortgage Centre Kelowna brokers work for you, not the lenders, and are committed to providing you with the best available package of rates and features for your particular situation.
BC Direct Mortgages Inc. is an independent member of the Mortgage Centre Network. Please note that the information in this blog is for general information purposes only, and the rates and/or terms are subject to change without notice. The views or opinions expressed are the author's own and may not reflect the views or opinions of any of our lenders or any other source.