Thinking About Refinancing? Fall Is a Great Time to Take a Look
We know. Somehow it’s October already.
The holidays are around the corner, the year is starting to wind down, and reviewing your mortgage probably isn’t at the top of your fun fall activity list. Fair. 😂
But if mortgage refinancing has been on your mind, this can actually be a really good time to sit down and figure out whether it makes sense for you.
And we want to emphasize the for you part.
Refinancing isn’t automatically the right move just because you have equity in your home. There are costs, penalties and longer-term implications to consider. Our job is to help you look at the whole picture and decide whether it actually leaves you in a better position.
Why Look at It Before the End of the Year?
For a lot of people, fall is a natural time to take stock of their finances.
Maybe you’ve accumulated some higher-interest debt. Maybe there’s a renovation you’ve been putting off. Maybe your monthly payments feel heavier than you’d like. Or maybe you’re simply wondering whether your mortgage is still set up in the best way for where life is now.
Those are all good reasons to have the conversation.
A refinance may allow you to access some of the equity in your home and restructure your finances. In Canada, homeowners can generally refinance up to 80% of their home’s appraised value, subject to lender qualification and approval.
But accessing equity isn’t free money, and rolling debt into your mortgage can mean paying that debt over a much longer period. So before we recommend anything, we want to know what you’re trying to accomplish and run the numbers with you.
What About Consolidating Debt?
This is probably one of the conversations we have most often.
If you’re carrying credit cards, lines of credit or other higher-interest debt, combining some of that debt with your mortgage may lower your overall monthly payments and make things feel much more manageable.
Sounds great, right?
Sometimes it is. But a lower monthly payment doesn’t necessarily mean a lower total cost over time.
That’s why we don’t want to just say, “Yep, refinance!”
We’ll look at your current mortgage, any penalties involved, the interest you’re paying elsewhere, your available equity and what the new mortgage would actually look like. Then we can show you the options in normal-human language so you can decide what feels right.
No mortgage dictionary required. 😉
“We don’t want to find you a mortgage solution. We want to help you figure out which solution actually makes sense for your life.”
A Few Things We’ll Look At
If you’re considering refinancing, we’ll usually start with your current mortgage balance and rate, your maturity date, any potential payout penalty, the approximate value of your home, your current debts and, most importantly, what you want the refinance to accomplish.
Because the goal isn’t just to change your mortgage.
It’s to make sure the change actually helps you.
Do You Need to Refinance in October?
Nope.
There’s nothing magical about October 31st, and we’re definitely not going to tell you that you’ve missed your chance if you call us in November.
But if refinancing has been sitting on your mental to-do list, fall can be a great time to finally take a look at it, especially if you’d like to head into the new year with a clearer picture of your finances.
And having the conversation doesn’t mean you have to refinance.
Sometimes we run the numbers and say, “Yep, this makes sense.”
Sometimes we say, “Not yet. Let’s leave things exactly where they are.”
Both are good outcomes.
If you’ve been wondering whether refinancing could help, send us a message. We’re happy to look at the numbers with you, explain the options without all the mortgage-y language, and help you figure out what makes the most sense for you.
