The Bank of Canada announced on Wednesday that they will not be changing their overnight rate which is currently 1.75%. The rate has remained unchanged for the last six months (October 2018) and is expected to hold steady for at least most of this year, if not part of the next.
Why to refinance
When rates are lower than what you already have, it’s a good time to consider refinancing. If your mortgage is coming up for renewal you’re in luck. Rates are at near historic lows and are expected to stay that way for at least the rest of the year. If your mortgage isn’t up for renewal anytime soon, it may still be a good idea to consider refinancing. There are usually fees or penalties to breaking your mortgage contract early, but it may be worth it depending on how much money you stand to save in the long run. In addition, many lenders are willing to cover the fees or will allow you to roll them into your new mortgage. Talk to one of our experts to find out exactly what options are available for you specifically.
How to refinance
When your mortgage is up for renewal or if you want to break your mortgage early in order to refinance, your best bet is to talk to a mortgage broker to find out what options are available to you, both from your existing lender as well as other lenders. Refinancing not only allows you to access better interest rates but it also gives you the chance to cash in on some of the equity that has accumulated in your home. Opening a home equity line of credit (HELOC) can open up investment possibilities, renovation potential, or other financial endeavors. Plus, HELOCs require interest only payments.
Refinancing is also a good opportunity to consolidate other high interest debt into your mortgage. Life happens. Sometimes your car breaks down or your basement springs a leak and the only way to pay for it is with a high interest credit card. Being able to transfer that debt over to your mortgage with a much lower interest rate will save you a lot of money if you don’t anticipate being able to pay off emergency expenses quickly.
Currently, Your Trusted Mortgage Brokers can offer fixed rates at 2.99% and variable rates at a fraction less. With potential interest rate hikes in the not too distant future, locking in your rate may be a good idea. Contact us today for more information or to get started with a mortgage refinance.