Refinance my mortgage

Planning ahead really can save you money down the road. And with the high-cost holiday gift-buying and entertaining season quickly approaching, this may be the perfect time to refinance your mortgage and free up some money instead of relying on high-interest credit cards.

You may find that taking equity out of your home will help bring joy back into your holiday season – and start the New Year off on a debt-free note, as you may also be able to use some of the equity in your home to pay off high-interest debt such as your credit card balances. This will enable you to put more money in your bank account each month.

And since interest rates are hovering near historic lows – you can currently get a five-year mortgage for under 3.5% – switching to a lower rate may save you a lot of money, possibly thousands of dollars per year.

There are penalties for paying your mortgage loan out prior to renewal, but these could be offset by the lower rates and extra money you could acquire through a refinance. I can sit down with you and work through all of the equations to ensure this is the right move for you.

With access to more money, you will be better able to manage both your holiday spending and existing debt. Refinancing your mortgage and taking some existing equity out could also enable you to do many things you’ve been longing to accomplish – such as purchasing an investment property, taking that well-deserved vacation, renovating your home or even investing in your children’s education.

Paying your mortgage down faster
By refinancing, you may extend the time it will take to pay off your mortgage, but there are many ways to pay down your mortgage sooner to save you thousands of dollars in interest payments. Most mortgage products, for instance, include prepayment privileges that enable you to pay up to 20% of the principal (the true value of your mortgage minus the interest payments) per calendar year.

This will also help reduce your amortization period (the length of your mortgage), which, in turn, saves you money.

You can also increase the frequency of your mortgage payments by opting for accelerated bi-weekly payments. Not to be confused with semi-monthly mortgage payments (24 payments per year), accelerated bi-weekly mortgage payments (26 payments per year) will not only pay your mortgage off quicker, but it’s guaranteed to save you a significant amount of money over the term of your mortgage.

If, for instance, you have a $100,000 mortgage, an interest rate of 5% and an amortization period of 25 years, your monthly mortgage payment would be $581.60 and your total payments for a year would be $6,979.20 ($581.60 x 12).

To understand the savings accelerated bi-weekly mortgage payments can make, take the monthly mortgage payment of $581.60 and divide it by two ($581.60 ÷ 2 = $290.80).  Next, take that payment and multiply it by 26 to arrive at your total payments for the year ($290.80 x 26 = $7,560.80).

As you can see, by using the monthly mortgage payment plan, you’ve made payments totalling $6,979.20 for the year, while using the accelerated bi-weekly mortgage plan you’ve made payments totalling $7,560.80 – a difference of $581.60.

By opting for accelerated bi-weekly mortgage payments, you’re making one additional monthly payment per year.

Using this example, you would reduce the amortization on your $100,000 mortgage from 25 years to just over 21 years and your total savings on interest over the life of the mortgage would be just over $12,000.

By refinancing now – before the holiday season is in full swing – and planning ahead, you can put yourself and your family in a better financial position.

As always, if you have any questions about refinancing, reducing debt or paying down your mortgage quicker, I’m here to help!

Is now the time for you to Refinance your Mortgage

I was recently quoted in an article that appeared in The Liberal. The Liberal is a local newspaper in Richmond Hill, Ontario.

To read the entire article online, click here: Is now time for you to refinance your mortgage?

Yes, now can be an ideal time for you to refinance your mortgage. Whether you live in Richmond Hill , or anywhere in York Region, or Toronto, or Ontario!

All it takes is a quick call your lender to find out what your pre-payment penalty is. Then you call me to find out how much you can save on your monthly payments, and how much you'll save in interest for the remainder of your current term.

Today's historically low interest rates are:

Terms Posted Rates Our Rates 1 YEAR 4.20% 2.99% 2 YEARS 4.70% 3.69% 3 YEARS 4.90% 3.50% 4 YEARS 5.14% 3.80% 5 YEARS 5.45% 3.69% 7 YEARS 6.30% 5.15% 10 YEARS 6.70% 5.25% Rates are subject to change without notice. *OAC E&OE

Prime Rate is 2.25%. Greg Barrow, Mortgage Agent 416 807 7123 gbarrow@dominionlending.ca

Ontario Mortgage Rates are Low - Now is the time to Refinance

This edition of Ontario Mortgage Rates Weekly Rate Minder has the latest, best rates for Canadian mortgages. At Dominion Lending Centres, we work on your behalf to find the mortgage that suits your needs. Best of all - our service is "free".* It's the selected lender that pays us and YOU get the best rate. *(O.A.C., E.&O.E.)

• Explore Mortgage Scenarios with Helpful Calculators on Ontario Mortgage Calculators

Terms Posted Rates Our Rates 1 YEAR 4.20% 3.00% 2 YEARS 4.70% 3.69% 3 YEARS 4.90% 3.80% 4 YEARS 5.14% 3.90% 5 YEARS 5.45% 3.74% 7 YEARS 6.30% 5.15% 10 YEARS 6.70% 5.25% Rates are subject to change without notice. *OAC E&OE Prime Rate is 2.50%.

Variable rate mortgages from as low as Prime + .75% Rates are subject to change without notice. Fixed mortgage rates shown in table above and quoted variable mortgage rates are available nationally to qualified individuals. Some conditions may apply. Lower rates may be available in certain regions, or to those with higher credit scores or higher net worth – check with your Dominion Lending Centres Mortgage Expert for full details. *O.A.C., E.& O.E.

With interest rates this low, now is an ideal time to Refinance your existing mortgage. At the very least contact Greg to see how much money you can save on your monthly payment, not to mention the thousands you will save in interest payments. Call 416 807 7123 or email gbarrow@dominionlending.ca and SAVE YOUR MONEY!

Perfect time to get new mortgage, experts say.

[680News reporter Colin D'Mello interviews Laurie Campbell, the executive director of Credit Canada]
Toronto - With interest rates at its lowest point in years, many people are looking to re-negotiate their mortgages, and get a better deal.
Whether it's with the person's current bank, or a new one, some experts said knocking down the interest rate can be accomplished.
Laurie Campbell, the executive director of Credit Canada, told 680News people can even get the bank to pick up the legal fees.
"There are going to be penalties, and not many banks are going to take on those penalties. You can; however, in many cases, find yourself in a better position if you actually do break that mortgage agreement and get a new one drawn up," Campbell said.
She said people can appeal to their banker first, ask for the bottom line rate, and then shop around and haggle.
Campbell said people can do the same thing with their credit card company and ask for a preferred rate.
"But, remember, you better be a preferred customer, you better not have any late payments, you better not have a high debt [and] you better be in stellar condition," she added

After you have listened to the interview, please call Greg at 416 807 7123 to see if you can save money by refinancing your mortgage.

Mortgage & Real Estate Headlines

Canadians becoming more optimistic about buying a home: poll
[Canadian Press - March 4, 2009]
OTTAWA - A new Royal Bank survey suggests more Canadians are becoming optimistic about the housing market and contemplating home ownership. The RBC survey - conducted in early January by Ipsos Reid - found 65 per cent of the people polled thought it was a buyer's market. The survey also found 27 per cent of the respondents intended to buy a home over the next two years, up four points from last year's poll. The four-point increase is the biggest uptick recorded by the annual RBC home-buying intentions survey since 2001. The online survey is based on responses from 2,026 adult Canadians, from Jan. 6 to 9.

Time to rethink your mortgage: Refinancing to lock in low rates.
[Canada.com - March 9, 2009]
Have a fixed-rate mortgage at 4.5 per cent or higher? Then you should be refinancing, says Steve Moffitt, senior mortgage consultant with Equimac Mortgage Centre in Vancouver.
"There's never been a better opportunity historically, never, for doing a refinancing, '' he adds.
If only it were that simple. In fact, determining whether you should refinance or not depends largely on the penalty you will pay to get out of your current mortgage, and the amount of money you could save with a new one. Full Story

Good time to re-mortgage for those who can do it
[Canada.com - March 9, 2009]
Six months ago, before the credit crunch bit and risk became a cutting four-letter word, obtaining or renegotiating a mortgage was pretty much a formality. It's harder now. Financial institutions haven't necessarily changed their lending criteria for mortgages, but they do apply them more strictly. "Grey-area" borrowers who would have received the benefit of the doubt a year or two ago might need to apply several places now before finding a taker. The doors are still wide open, though, for clients with steady income, significant assets and/or a solid credit history. They are, in fact, the object of keen competition between lenders, and as such are in an excellent bargaining position in what is normally the biggest month of the year for mortgage transactions. Full Story

Breaking up with your mortgage
[Financial Post - March 7, 2009]
Excerpt from Article: "While not encouraging people to break their mortgages, the banks are acknowledging that some consumers who locked into higher rates can save money if they refinance at the new lower rates."
"It poses an obvious question for anyone who has locked into rates as high as 5.75% on a five-year fixed-rate mortgage: Should they break that mortgage? It probably does make sense to break it now, says Vince Gaetano" Full Story

Refinancing Your Mortgage - Can you SAVE Money?

It is definitely worth a call to a mortgage professional to see if you will! One 5 minute telephone call can save you hundreds on your monthly payment and thousands on the interest you'll pay.

For example, if your current mortgage details are as follows:
Your outstanding balance is: $242,000
Your monthly payment is: $1550
Your remaining term: 24 months
Your current interest rate is 5.25%
Remaining Amortization is 260 months

5 Year Fixed Interest Rate are now as low as 4.1% (Variable are as low as 3.3%)

You are thinking of "breaking" the mortgage in order to obtain a better interest rate.
According to your mortgage contract, you are required to pay the lender 3 months interest as a penalty for breaking the mortgage. Is it worth while to wait for an additional 24 months, and simply renew the mortgage at that time - and take your chances on the interest rate - or is it better to "break" the mortgage, and pay the penalty?

In fact, if you do "break" the mortgage - while you must increase your mortgage principal by the amount of the penalty - an additional $3,200 - you will end up reducing your monthly payment to $1,303 (compared to the old $1,550).
So, even with the penalty, it is worthwhile to break the mortgage because your savings on monthly payments over two years add up to $5,681.

In addition you will knock 3.27 years or 39 months off your amortization.

If you would like to review your current situation, please call Greg at 416 807 7123 or send an email to gbarrow@dominionlending.ca. I would be happy to answer any of your questions and even happier if we can save you money!

Have a great day!

Have you considered refinancing your mortgage?

If you’re trying to determine if now’s a good time to refinance your mortgage and free up some extra money, speak with a qualified mortgage expert. They will help you determine if refinancing is the right option for you and your family.

If you’re looking to reduce your costs and lower your monthly mortgage payment, then now may be a great time to do just that. Mortgage rates are currently low and switching to a lower rate may save you a lot of money – possibly thousands of dollars per year. There are penalties for paying your mortgage loan out prior to renewal, but these could be offset by the extra money you could acquire through a refinance.

If you’re able to lower your fixed-rate mortgage, or change from a fixed-rate to variable-rate mortgage, you could be putting more money in the bank each month. Make sure you speak with a mortgage broker about variable-rate mortgages, however, as this product adjusts with the bank rate and can fluctuate up or down.

With access to more money, you will be better able to manage your debt. Refinancing your first mortgage and taking some existing equity out could also help you pay off some of your high-interest rate credit card debts. You could also take some extra money out to invest, go on vacation, do some renovations or even invest in your children’s education. Refinancing your first mortgage is typically more cost effective than taking out a second mortgage.

Don’t forget that by refinancing you are extending the time to pay off your mortgage. That being said, there are many ways to pay down your mortgage sooner. Most mortgage products have prepayment privileges that allow you to pay up to 20% of the principal per calendar year. You may not be able to use any extra money you have now to take advantage of these extra payments but, once you are in a position to do so, it is highly recommended to try and make some additional payments to reduce your principal (the true value of your mortgage minus the interest payments) and the amortization period (length of your mortgage).

If homeowners fail to take the time to thoroughly research their options and simply sign the renewal offers they receive from their bank, credit union or other lender, they could end up paying thousands of dollars more per year in interest.

In the current credit-crunched lending environment, now more than ever it’s important to take the time to contact a mortgage agent to find out your options.

By refinancing now and paying off some debt, you can put yourself and your family in a better financial position. It’s very important to not rack up your credit cards after refinancing, however, so set your goals and budgets, and stick to them!

[Source-Dominion Lending Centres]