Want to reduce your interest rates?
Refinancing, Transfer & HELOC
How much are you looking to borrow?
Want to reduce your interest rates or change the terms of your mortgage? Is your mortgage coming to an end? Need money to cover a large expense?
Before you consider refinancing/transferring your mortgage, or tapping into the equity of your home, you’ll need to factor in the costs and risks involved. For example, you may need to pay appraisal costs, legal fees, and prepayment charges. If you are switching lenders, you may have to pay a discharge fee. If you switch from a fixed-rate mortgage to a variable-rate mortgage, you may run the risk of higher future payments due to rising interest rates. There is a lot to consider!
Our mortgage specialists are here to help you weigh the benefits against the costs and risks, find you the best deals available, and guide you through the process.
I want to refinance my mortgage
When you break your existing mortgage to start a new one, you can choose to refinance with the same lender or transfer to a new one. Some of the reasons you would want to break your existing mortgage might include: to get a lower interest rate, consolidate your finances, or access the equity in your home to cover a large expense.
My mortgage is coming up for renewal
When your mortgage term comes to an end, you have the option of paying off your mortgage in full or renewing it. Your current lender will notify you when it is time to renew. By law, they are required to send you a mortgage renewal statement at least 21 days before your term is up.
I want a home equity line of credit (HELOC)
A home equity line of credit or HELOC is a loan that is secured against the equity in your home. It differs from other types of loans in that you are not given an entire sum of money up front. You borrow the amount you need (up to the limit established by your lender), when you need it.
If you are looking to reduce your monthly mortgage payments, save money by lower your interest rate or shorten the term of your mortgage, or consolidate your debt by tapping into your home’s equity, refinancing your mortgage can help you achieve your goals. However, there are costs associated with refinancing so it’s important to determine if refinancing will be a wise financial decision for you.
A lower interest rate may be one of the best reasons to refinance. It not only helps you save money in the long-run, it also increases the rate at which you pay down your mortgage, and can decrease the size of your monthly payments.
When you need to pay for large expenses like home renovations or education it makes sense to replace high-interest debt such as credit cards or other loans, with a low-interest mortgage.
Before you make the decision to refinance your mortgage, you’ll need to examine all the costs and potential risks involved to ensure that your refinance does not end up costing you more than you are saving.
There are a number of fees and closing costs associated with a mortgage refinance such as prepayment charges for ending your mortgage agreement before the term is done, property registration and valuation, and lawyer fees.
If you are switching to a variable-rate from a fixed-rate, you run the risk of having higher monthly payments if there is an increase in interest rates. This is what happened during the recession of 2007 when a sudden sharp increase in mortgage rates caused many people to default on their mortgage because they couldn’t afford to pay the higher monthly payments.
If think you will have to move soon because you have outgrown your home or have to relocate because of a job, refinancing isn’t for you. If you move within a few years of refinancing, the savings likely won’t outweigh the closing costs.
If you can justify the costs and risks involved with the money you will save with your new mortgage rate, then breaking your mortgage makes sense. It’s not a good idea to refinance your mortgage if it is unrealistic for you to assume the financial risk.
The down payment is the amount that you will need to pay to secure your mortgage. You will be expected to come up with a minimum of 5% of the cost of the home if the price of your home is below $500,000. For homes that are priced between $500,000 and $999,999, the down payment is 5% of $500,000, plus 10% of the remaining amount. Homes over a million dollars, require a 20% down payment.
These are the minimum down payments to qualify for a mortgage, and anything below 20% requires you to have mortgage default insurance. This insurance protects the lender in case you default on payments. Your mortgage loan insurance can be paid for upfront or added to your monthly mortgage payments.
The down payment is the amount that you will need to pay to secure your mortgage. You will be expected to come up with a minimum of 5% of the cost of the home if the price of your home is below $500,000. For homes that are priced between $500,000 and $999,999, the down payment is 5% of $500,000, plus 10% of the remaining amount. Homes over a million dollars, require a 20% down payment.
These are the minimum down payments to qualify for a mortgage, and anything below 20% requires you to have mortgage default insurance. This insurance protects the lender in case you default on payments. Your mortgage loan insurance can be paid for upfront or added to your monthly mortgage payments.
Refinancing Your
Mortgage
Mortgage refinancing is when you break your existing mortgage to start a new one. You can choose to refinance with the same lender or transfer to a new one. Some of the reasons you would want to break your existing mortgage might include: to get a lower interest rate, consolidate your finances, or access the equity in your home to cover a large expense
Are ready to start your mortgage renewal process today? Speak to one of our mortgage specialists today.
When your mortgage term comes to an end, you’ll have to either pay off your mortgage in full or renew it. Your current lender will notify you when it is time to renew. By law, they are required to send you a mortgage renewal statement at least 21 days before your term is up.
This is an opportunity for you to renegotiate the terms of your mortgage agreement, such as the interest rate and length of term, with your current lender or consider transferring your mortgage to a new lender.
Transferring your mortgage to another provider will give you access to better mortgage rates and terms. If your income has increased since you started your mortgage, you may be looking to pay off your mortgage sooner and save yourself years of interest payments. Lenders differ in their payment options so you may be able to find one that better suits your needs.
Start your research early! Find out what other lenders are offering in terms of mortgage rates, prepayment options, and other terms and conditions, and you’ll be in a better position to negotiate when you are ready to renew.
Mortgage Renewal
or Transfer
Speak to one of our mortgage specialists to find the best mortgage rates and terms for you.
A home equity line of credit or HELOC is a loan that is secured against the equity in your home. It differs from other types of loans in that you are not given an entire sum of money up front. You borrow the amount you need (up to the limit established by your lender), when you need it. The amount of time you have to borrow funds (draw period) can range from 5 to 25 years. You can make a repayment of any amount, at any time. Your minimum required monthly payment is if often the interest only. The full amount of the funds you have borrowed, plus outstanding interest, is due at the end of your draw period.
A home equity line of credit works a lot like a credit card account. It allows you easy access and flexibility in the amount you need to borrow (up to your limit). Because it is secured by the equity you have in your home, the interest rates are lower than credit cards or other types of unsecured loans.
Homeowners commonly use a home equity line of credit for:
- Debt consolidation
- Home improvements
- Education
- Weddings
- Emergency expenses
- Business expenses
A home equity line of credit allows you easy access to available credit. It is flexible and can be set up to fit your borrowing needs, and it’s a good way to consolidate your debts at a lower interest rate.
Other advantages include:
- You can borrow as much as you want up to your available credit limit.
- You only pay interest on the amount you borrow.
- You can pay back the money you borrow at any time without a prepayment penalty.
- Interest rates are often lower than other types of credit, such as unsecured loans and credit cards.
There are disadvantages to a home equity line of credit that are common to other loans, such as:
- Changing variable interest rates that could increase your monthly payments.
- Your lender can reduce your credit limit.
- Your lender has the right to demand the full amount at any time.
- Your credit score will decrease if you don’t make the minimum payments.
Other disadvantages include:
- Easy access to large amounts of available credit makes it easier to spend higher amounts, which can lead to carrying a larger debt for a longer amount of time.
- If you switch your mortgage to another lender you may have to pay off your full home equity line of credit and any credit products you have with it.
- Your lender can take possession of your home if you miss payments.
Before you get your home equity line credit, you should consider things like flexibility, fees, interest rates and terms and conditions.
Home Equity Line
of Credit
Contact one of our mortgage specialists to find a home equity line of credit that suits your needs.
Frequently asked questions that can help you start your mortgage journey with us.
Contact Benson Mortgages specialist.
We offer a broad range of services to cater to different financial needs. Our services include residential mortgages for those looking to buy a home, refinancing for those who want to take advantage of better interest rates or terms, and transfers & HELOC for homeowners who want to leverage their home equity. We also provide private mortgages, 1st, 2nd & 3rd mortgages, reverse mortgages for seniors, commercial financing for businesses, and construction & land financing for developers.
A residential mortgage is a financial product that allows individuals to purchase residential property. The property is used as collateral for the loan, which is repaid over a specified period up to 40 years or interest only. The borrower makes regular payments to the lender, including the principal amount and interest.
A fixed-rate mortgage has an interest rate that remains the same throughout the loan term, providing stability and predictability for your payments. On the other hand, a variable-rate mortgage has an interest rate that can change over time based on market conditions. This means your payments could increase or decrease. The choice between the two depends on your financial situation, risk tolerance, and market expectations. There is also a variable rate mortgage with a fixed payment.
Refinancing a mortgage involves replacing your current mortgage with a new one, often with different terms or a lower interest rate. Refinance can be a good idea if you can secure a lower interest rate, and want to change the term length of your mortgage. You might need to access equity in your home in order to pay out debt, buy investment property or any other investments, pay for your kids' school or to renovate your home.
Secured Line of Credit is a type of loan that lets you borrow against the equity in your home. It works much like a credit line, where you have a credit limit and can borrow as much or as little as you need up to that limit. You only pay interest on the amount you borrow. It can be used for various purposes, such as home improvements, debt consolidation, or even to fund a business venture.
A private mortgage is a loan provided by a private entity or other financial institution, such as an individual or a business, rather than a traditional bank. People often choose private mortgages when they have unique financial circumstances that make it difficult to qualify for a traditional mortgage, such as being self-employed or having a less-than-perfect credit history. Private mortgages offer flexibility and can be customized to meet the borrower's needs. Private mortgages are used for the properties that do not meet banks criteria: land, properties under construction, agricultural properties, sub-divisions, etc
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