Time to Refinance Your Mortgage?
We purchase a home for a variety of reasons. Many of us want the stability of owning our own home, while others look at home ownership as an investment vehicle. No matter what our reason, the truth is that home ownership has proven to be a good stable investment over time, and one which many Canadians profit from.
While many people have entered the market during these times of lower interest rates, there has also been a large movement to refinance home loans and pull out equity for a multitude of reasons. Nationally we have been borrowing against our home’s equity in record numbers, taking out billions of dollars in cash each year for home improvements, investments, and high interest credit consolidation.
Canadians today face many reasons to refinance their mortgage. For example, you may have been working at repairing your credit score and now you qualify for a new mortgage with a better mortgage rate, or maybe you want to lower your payments by changing from a fixed-rate to a variable rate mortgage, saving thousands of dollars.
Many people find that one of the easiest and most affordable ways to access money is through the equity that they have built up in their home. With today’s low mortgage rate environment, his can be one of the most affordable ways to achieve your goal.
Using your home’s equity to your advantage
Home ownership in Canada has proven itself to be a good stable investment over time, and one in which many Canadians are now profiting from.
In the past, many people saw their homes as a place of shelter only. Now, today more Canadians are willing to borrow against the equity in their homes to further themselves financially. Whether it is for investing, getting out of debt, sending their children to university, or making improvements to their homes, many homeowners access the equity they find in their property to further their financial goals. Where home equity was once kept squirrelled away, today it is often used to one’s financial advantage.
While using the equity from your home can be a good idea, you should always do so with caution and full awareness. You should fully understand the benefits and possible risks of any financial transaction. Consult a licensed mortgage professional to discuss how to make your home’s equity work for you.