Refinancing

Refinancing

Equity is a powerful thing. Many individuals will refinance their home to send their kids to school, do that big renovation, consolidate debt or go on that trip of a lifetime. Big expenditures can take a toll on cash flow but by refinancing, you can leverage your equity and not be cash poor.  Understanding refinancing options and the costs associated with it is key. One of our CENTUM mortgage brokers are here to walk you through every step of the process.

Refinancing

Home renovations are exciting for any home owner but they shouldn’t burden you financially. Talk to a CENTUM mortgage broker about your renovation or project. Whether you are updating your home from the 70’s to 2017 or looking to reduce your carbon footprint, CENTUM has a solution for you. You can add value/equity to your home through renovations and we can also help finance those unexpected maintenance costs that come with home ownership.

Are you carrying a lot of debt? Paying high-interest costs? Consolidating your debt into one loan can save you money! With one simple payment, your finances are better organized and will save you time.

Reasons why to consolidate

  1. Save money on interest costs
    1. With a lower rate, you will save money on interest and can pay your loan off faster
  2. One simple payment
    1. With only one payment to worry about, your finances will be simplified and more organized
    2. Saves you time without the worry of multiple loans
  3. Lower rate
    1. A lower interest rate can be obtained by using the equity in your home

Reach out to an agent today to discuss Debt Consolidation. 

Depending on the amount of equity in your home (the value of your home minus any debts secured against it) you may qualify for an equity line of credit.  A home equity line of credit is secured against your home making the rates much lower than traditional unsecured lines of credit from your bank.  They can be used for a variety of things, such as:
 

  1. Renovations
  2. Investing
  3. Debt consolidation
  4. Dream vacation
  5. Wedding
  6. Money that is available at any time for anything you’d like

Having funds readily available when you need them provides you with financial piece of mind.  The fact that it’s a lower rate is a bonus.  Contact one of our CENTUM mortgage brokers today to get started!

In the past, home equity was something not realized financially until you sold your home. Today, you have access to the equity at any time and can leverage it for consolidating debt, home renovations, topping up RSP’s and other large purchases.

It is important to understand how much equity you can access and the costs associated with that transaction.  At CENTUM, we are here to help you use that home equity to best suit your needs.

Accessing the equity in your home can have a positive financial impact. Knowing how and when to exercise this option is where one of our CENTUM mortgage brokers comes in. Contact us today to gain access to your home equity!

With a CHIP Reverse Mortgage, it gives you the option to take the equity from your home while continuing to own it. The housing market is hot and majority of someone’s wealth is usually tied up in their home. We understand that when it comes to retirement, sometimes your income takes a hit. With the CHIP reverse mortgage you can supplement your income with the equity within your home and remain in control of your home including the title staying in your name.

What is a Reverse Mortgage?

A reverse Mortgage lets you remain in your home and access up to 55% of the equity. Instead of making mortgage payments each month, you will receive tax free monthly payments. The loan will never exceed the fair market value of your home so it will not be a burden to yourself or your family. If your family wants to purchase the home, they only have to pay the accumulated loan amount and not fair value of the home.

How to Get a Reverse Mortgage

Simply talk to a CENTUM mortgage broker and meet the following criteria:
 

  • Yourself and spouse need to be 55 years of age or older
  • Your home is the primary residence
  • The location has to be preapproved by HomEquity Bank and be in their lending territory

Reverse mortgages have been a popular option for the past 25 years. It is a great way to supplement your income and access the equity within your home. All you have to do is continue with homeownership duties; pay your taxes, stay current on your insurance and if you currently have a mortgage, make those payments. Yes, you can have both!

A reverse mortgage has endless benefits and really can postively impact your life. Talk to one of our CENTUM mortgage brokers today to get qualified for a CHIP Reverse Mortgage.

Using your mortgage prepayment options can drastically reduce the total amount you spend on your mortgage and shorten the time it takes to pay it down.  Even paying a little more each month can make a huge difference.

Anytime you increase your payments, the excess that you pay per payment goes directly into the principal portion of your mortgage. This is a great way to drastically reduce the interest you will have to pay over the term of your mortgage.

Typical prepayments allow you to add between 10% to 20% of your payment amount to each payment, depending on your lender.  Let’s say you just paid off a loan and now have those additional funds available each month. 

Here’s an example of prepayments being used on a typical mortgage:

All calculations are based on a $400,000 mortgage with a 5 year term and 25 year amortization at a rate of 2.59% with monthly payments.

No Prepayments:

Monthly payments: $1,809.84
Principal paid over 5-year term: $60,836.51
Interest paid over 5-year term: $47,753.89
Mortgage amount remaining: $339,163.49
Years remaining on mortgage after 5 years: 20 Years

Adding a 15% Prepayment:
Monthly payments: $2,081.32
Principal paid over 5-year term: $78,201.00
Interest paid over 5-year term: $46,678.20
Mortgage amount remaining: $321,799.00
Years remaining on mortgage after 5 years: 15 years & 9 months

As you can see, the mortgage was reduced by $17,364.49 and saved $1,075.69 in interest! The mortgage term was reduced by 4 years and 3 months in only 5 years!  All for an additional $271 per month. 

Making a large payment can be a great option for paying down your mortgage.  Whether it’s a Christmas Bonus, an inheritance or maybe even pulling an amount from an investment, lump sum payments help you reduce the amount of interest you will be required to pay on your mortgage.

If you decide that prepayments are for you, you can achieve mortgage freedom sooner than ever!

Contact one of our CENTUM mortgage brokers today and let’s set your goals into motion.

Lowest Rates* in Canada

Lowest Rates* in Canada
Term Our Rate Bank Rate
3 Year Fixed 3.14% 3.49%
5 Year Fixed 3.14% 3.99%
5 Year Variable 2.45% 3.45%
May 18, 2018

Updated: August 01, 2017

Rates may vary between geographic regions and the posted rates on this website may not be available in your area. Please contact your local CENTUM office for more details.


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