Mortgage refinancing in Toronto
Refinancing and Mortgage Solutions Tailored to Your Needs
Some conditions may apply. Rates may vary from Province to Province. Rates subject to change without notice. Posted rates may be high ratio and/or quick close which can differ from conventional rates. *O.A.C. & E.O
Esi Ghassemi - Mortgage Broker at Centum Financial Services Limited Partnership - Brokerage # 13054
What is Mortgage Refinancing?
Mortgage refinancing is the process of replacing your existing mortgage with a new one. Homeowners in Ontario refinance their mortgages to access better rates, consolidate debt, tap into equity, or change their mortgage terms.
How Does Mortgage Refinancing Work?
Save More on Your Home Financing!
Evaluate Your Current Mortgage:
Check your current mortgage balance, term, interest rate, and penalty for breaking your current agreement.
Determine Your Goal:
Common reasons include lowering your interest rate, accessing equity for renovations or investments, or consolidating high-interest debts.
Apply for Refinancing:
Work with your existing lender or a mortgage broker to explore options. Lenders will evaluate your income, credit score, and property value.
Appraisal:
A home appraisal may be required to determine the current market value of your property.
Benefits of Refinancing a Mortgage in Ontario
Lower Interest Rates:
Take advantage of market conditions to reduce your monthly payments.
Access Home Equity:
Borrow up to 80% of your home’s appraised value minus the remaining balance on your mortgage.
Consolidate Debt:
Combine high-interest debts (credit cards, personal loans) into your mortgage for one lower-interest payment.
Switch Mortgage Terms:
Adjust the term or type of your mortgage to suit your financial goals (e.g., switch from variable to fixed rates).
Financial Flexibility:
Use equity to fund renovations, education, or other investments.
Mortgage Refinancing Options in Ontario
To qualify for a reverse mortgage, you must
Banks Offering Mortgage Refinancing
Major banks in Ontario offer a variety of refinancing solutions, including fixed and variable rate options, flexible terms, and home equity products. These institutions cater to homeowners looking for competitive rates and personalized refinancing plans.
B Lenders for Mortgage Refinancing
B lenders are an alternative for homeowners who may not qualify with traditional banks. They provide refinancing solutions tailored to individuals with non-traditional income sources, lower credit scores, or unique financial circumstances.
Credit Unions for Mortgage Refinancing
Credit unions are member-owned financial institutions that often offer competitive rates and personalized service for mortgage refinancing. They can be an excellent alternative to traditional banks for homeowners looking for flexible solutions and community-focused lending practices.
Private Financing for Mortgage Refinancing
Private financing is a great option for homeowners who may not qualify for traditional refinancing through banks or B lenders. Private lenders often have more flexible lending criteria and focus on the value of your property rather than your income or credit score.
How It Works
Save More on Your Home Financing!
Prepayment Penalty:
Breaking your current mortgage may result in penalties. Fixed-rate mortgages usually have higher penalties than variable rates.
Appraisal Fees:
Typically ranges from $300 to $500.
Legal Fees:
You’ll need a lawyer to handle the closing process, which costs approximately $700 to $2,000.
Refinancing Fees:
Some lenders charge administrative fees for refinancing.
Key Questions to Ask Before Refinancing
What are the penalties for breaking my current mortgage?
How much equity can I access?
Will refinancing lower my overall monthly payments?
Are there other options, such as a HELOC, that might suit my needs better?
How a Mortgage Broker Can Help
Working with a mortgage broker, like Esi Ghassemi at CENTUM Financial Services LP, can simplify the refinancing process. A broker has access to multiple lenders, including banks, B lenders, and private lenders, to secure the best rates and terms tailored to your unique needs.
Contact Esi Ghassemi Today
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Case Study
Refinancing a Residential Property in Ontario The Goal
The Goal
A homeowner in Markham wanted to refinance their detached home, valued at $1,500,000, to access equity for home renovations and debt consolidation. They had an existing mortgage of $900,000 but wanted to increase financing to $1,200,000, keeping the Loan-to-Value (LTV) under 80% to avoid CMHC fees.
The Challenges
High-Interest Existing Loan → Current mortgage was at 6.45%
Debt Consolidation → Needed to pay off $50,000 in high-interest credit card debt
Credit Scores → Primary applicant: 735, Co-applicant: 695
The Solution
Secured a refinanced residential mortgage at 5.49% (5-year fixed) with a 30-year amortization
Increased loan amount to $1,200,000, freeing up $300,000 in equity
Used some of the funds to pay off $50,000 in credit card debt, reducing overall monthly payments
Lowered the mortgage rate, saving $7,800 annually in interest
The Outcome
New Mortgage Amount:
$1,200,000 @ 5.49% (5-year fixed)
New Monthly Payment:
~$5,900 (vs. $6,400 previously)
LTV After Refinancing:
80%
Approved in 2 weeks
Why Work with Esi.Mortgage?
- Lower rates with access to multiple lenders
- Smart refinancing strategies to reduce monthly costs
- Debt consolidation options for better financial management
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Frequently Asked Questions
What is mortgage refinancing?
Refinancing replaces your existing mortgage with a new one, often to get a better rate, consolidate debt, or access equity.
How much equity can I access through refinancing?
You can borrow up to 80% of your home’s appraised value, minus the remaining balance on your mortgage.
What are the main benefits of refinancing?
Lower interest rates, access to equity for renovations or investments, debt consolidation, and improved cash flow.
What are the costs of refinancing a mortgage?
Costs may include prepayment penalties, legal fees, appraisal fees, and lender administrative fees.
How does refinancing affect my monthly payments?
Refinancing can lower your monthly payments if you secure a lower interest rate or extend the mortgage term.
Can I refinance if I have bad credit?
Yes, but you may need to work with alternative lenders, like private lenders or B lenders, who have more flexible approval criteria.
Is refinancing the same as a home equity line of credit (HELOC)?
No, refinancing replaces your current mortgage, while a HELOC is a separate credit product secured by your home.
How long does the refinancing process take?s?
Refinancing typically takes 2–4 weeks, depending on the lender and your financial situation.
What is a prepayment penalty, and how is it calculated?
A prepayment penalty is a fee charged for breaking your current mortgage. It’s usually based on the interest rate differential (IRD) or three months’ interest.
What documents are required for refinancing?
You’ll need proof of income, a property appraisal, your current mortgage details, and identification documents.
Can I refinance during the middle of my mortgage term?
Yes, but you may incur penalties for breaking the term early. Some lenders allow you to “blend and extend” your mortgage to reduce costs.
What is a “blend and extend” mortgage?
It combines your existing mortgage rate with the lender’s current rate for a new term, allowing you to avoid penalties while accessing better terms.
Should I refinance with my current lender or switch to a new one?
Refinancing with your current lender may be convenient, but shopping around can help you find better rates and terms.
What is the difference between refinancing and renewing a mortgage? payments?
Renewing occurs at the end of your mortgage term with the same lender, while refinancing can happen anytime and may involve a new lender or different terms.
When is the best time to refinance?
The best time to refinance is when interest rates are lower than your current rate, or when you have a financial need such as debt consolidation or accessing equity.