Why Remortgage Your Whitby Home? 4 Excellent Reasons to Consider Refinancing Your Home
January 24, 2025 | Posted by: Sherry Corbitt
Your Whitby, Ontario home is probably the most significant purchase you'll ever make. Yet, it's surprising how many people continue paying their mortgage every month without overthinking about it. However, there's no reason to stick with your current deal if you're unhappy with it - and refinancing can often dramatically improve your daily finances. Here are four compelling reasons to consider a remortgage
Receive a Better Rate
When you took out your Whitby mortgage, you were probably quoted a beneficial rate in a bid to earn your business. However, as time goes on, you'll probably find the interest edges upwards. There's usually a little reward for loyalty, and the most attractive deals will generally be given to new customers. However, a remortgage allows you to negotiate a lower interest rate and, therefore, more affordable monthly payments, whether you stay with your current mortgage provider or move to a new one.
Change the Term
Lengthening the term will reduce your monthly repayments at the cost of more interest being paid overall. If your finances have taken a turn for the worse since you took the mortgage out, this can potentially make the difference between staying in your home or being forced to sell. The other side of the coin is that shortening the term will increase your payments but see you free of your mortgage more quickly, potentially saving a considerable amount of money along the way. Either way, a mortgage refinance gives you the flexibility to reorganize your finances around your primary asset.
Switch Your Mortgage Type
Economic conditions change over time, and this is reflected in fluctuating interest rates on typical mortgages. When you first bought your home, you may have opted for the security of a fixed-rate deal, but this may no longer be the most cost-effective option. Switching to a variable-rate mortgage could let you take advantage of current low base rates. On the other hand, if you currently have a variable-rate deal, you may feel now is an excellent time to lock in a low rate by switching to a fixed deal.
Release Equity
Whether for home improvements, debt consolidation, or taking advantage of real estate price rises to get a little extra cash, you can unlock the difference with a remortgage if your outstanding mortgage is significantly less than your home's value. By taking out a larger loan, you can pay off your existing debt with some money left over to spend how you like - and if you get a better mortgage deal in the process, then all the better.
A home loan is probably the most significant single financial commitment most people have in their lives. However, your current deal is not necessarily set in stone. Assessing your options and switching to a more appropriate package could give your finances a welcome boost for relatively little effort, so why not consider applying for a remortgage?
Please feel free to contact us for more details about remortgaging your home and how we can help.
Sherry Corbitt, Mortgage Broker
