Mortgage Refinance Oakville

Homeowners in Oakville have a number of tools at their disposal that can help them get out of debt more quickly, reduce their mortgage payments, or even help them to pay off their mortgage more quickly. One such tool is something called a mortgage refinance.

When you refinance your mortgage, it simply means that you are breaking your current mortgage in order to get a new mortgage that better suits your current needs. When you break your mortgage, it is important to remember that there will be a financial penalty for doing so, however under the right conditions, you can still save quite a bit of money with this mortgage strategy even with the penalty.

Why should you choose to refinance your mortgage in Oakville?

People in Oakville may choose to refinance their mortgages for a number of reasons, but the two primary reasons that most people refinance are to save money on interest and/or to access cash from their home equity.

Saving money on interest

In recent years, mortgage interest rates have come down considerably, so if you got your current mortgage a few years back, refinancing now could save you quite a lot over your amortization period. Or you could save even more interest if you currently have a mortgage with a private or alternative lender. If your credit wasn’t great when you got your current mortgage, but you have been repairing it over the past few years, you may now qualify for a better rate that you couldn’t get originally. Remember, even a small reduction in your interest rate could end up saving you thousands of dollars.

Accessing your home equity

The other main reason why many Oakville homeowners decide to refinance is if they wish to access some of the equity in their home. In order to access home equity with a mortgage refinance, you have to get a larger mortgage than you have now – the amount you currently owe on your home plus the amount of cash you wish to access (most lenders will let you borrow up to 80% of your home equity). You can use money from your home equity for any reason you choose however common reasons include debt consolidation and large expenses such as home renovations.

How to get the best rates on a mortgage refinance

There are many lenders out there who can offer to refinance your mortgage for you, and these lenders vary in the interest rates that they charge. In order to find the best possible rate for your situation, it is best to work with a professional mortgage broker.

Mortgage brokers know the industry will and they have working relationships with dozens of lenders. Your mortgage broker can compare rates of many different lenders for you to help ensure that you are getting the best deal possible on your mortgage refinance.

How to get a mortgage refinance even with bad credit

Most lenders are going to take your credit score into consideration before offering you a mortgage refinance but that doesn’t mean you still can’t refinance your mortgage even with bad credit. There are lenders who specialize in working with people who have damaged credit, and your mortgage broker can help match you up with one of these lenders.

In fact, refinancing your mortgage may even help you to repair your credit either by making your payments easier to manage, or by helping you get out of debt more quickly through debt consolidation.

Advantages of using a mortgage broker to refinance your mortgage

While it may be possible to simply walk into your financial institution and get a mortgage refinance, it is usually in your best interest to work with a mortgage broker instead. For most transactions, working with a broker costs you nothing, and there are several other advantages as will including:

  • Getting expert advice on whether a mortgage refinance really is the best option for you (as opposed to other mortgage tools such as a second mortgage).
  • Having peace of mind that you really are getting the best possible interest rate because your broker has done the work to compare rates and lenders for you.
  • Getting a list of the exact documents and financial information that you need to assemble rather than trying to figure it out on your own.
  • Getting assistance with the application itself. (Ensuring that your application is complete and accurate will help to avoid unnecessary delays.)
  • Having someone in your corner who can answer all of your questions related to your mortgage refinance so you can be sure that you are making the right choice.

Contact us today!

If you are an Oakville homeowner, and you are considering refinancing your mortgage, we would love to help! Contact us today to set up an appointment with one of our brokers.