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Mortgage refinance in Canada

Whether you need $10,000 or $50,000 – Alpine Credits is the best alternative for mortgage refinancing in Canada

What is mortgage refinancing?

Mortgage refinancing means paying off an existing loan by starting a new one, either with the same or a new lender. Most often, homeowners refinance to take advantage of lower market interest rates, access equity in their homes, consolidate debts, or reduce their monthly payments with a longer repayment term.

The first step to mortgage refinancing is knowing if you are eligible and ready for the process.

How to qualify for mortgage refinancing in Canada

Refinancing your mortgage is a long-term commitment. Before you approach a lender, you will need to ensure that you have enough reason to refinance. Below are some valid reasons to apply for mortgage refinancing in Canada

  1. You are thinking of starting a new business
  2. You are planning to buy a new property or renovate the existing one
  3. You need money for your child’s education fund to pay tuition
  4. You have an urgent medical situation

However, to qualify for a mortgage refinance, make sure you satisfy the following criteria.

Although, how soon you can refinance after buying a home varies by the type of loan and lender, generally, your name has to be in the title of your home for at least 6 months for most refinancing loans.

You need to build up enough equity in your home to qualify for a refinance. Home equity is the percentage of your home’s value and the amount of cash you would get if you sold your house and paid off your mortgage. The more equity you have, the better it is for refinancing.

Your source and amount of income may be different from when you secured your previous mortgage l. Thus, you would need to prove to the lenders that you can repay the refinanced loan on time.

Determine whether your debt-to-income ratio is reasonable. Lenders most often verify that your monthly loan payment won’t eat up too much of your current income, with some preferring a ratio of no more than 36%.

Of course, this leaves many retirees unable to qualify for mortgage refinancing. That’s where Alpine Credits comes in. Even if you have no income, getting a home equity loan through us is easy!

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Key benefits of mortgage refinancing from Alpine Credits

Alpine Credits has been in the business for more than 50 years and their experience is something you can bank on. Here are some reasons why we can be a perfect fit when it comes to refinancing your mortgage.

  1. We do not apply the same stringent lending criteria as  traditional banks.
  2. We offer quick loan options regardless of your age, income, and credit history
  3. We offer lower interest rates compared to other lenders
  4. We offer approvals within 24 hours and funding within a week.
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Signs you need mortgage refinancing in Canada

Mortgage refinancing can be looked at as a cost-saving opportunity for your current mortgage. Here are some reasons why you might want to refinance your mortgage.

Here are some benefits you’ll enjoy by choosing Alpine Credits as a home equity loan provider for refinancing in Canada.

Lower interest rates mean you will pay less every month. Refinancing even for a 1% lower rate is often worth it and can help with significant monthly savings. For instance, dropping your rate from 3.75% to 2.75 % will save you $250 monthly on a $250,000 loan.

A credit score is simply the analysis of your financial history, and this shows your ability to pay off loans.It helps lenders assess the risks of non-payment. If you have proven to be reliable over time, refinancing is a good way to remind your current lender that you can ease the terms or find a different lender who values your worth.

A shorter repayment term translates into reduced time to pay off your mortgage. While this might increase your payments in the short term, it will save you money in the long run. This is because the longer your repayment term is, the more interest you will have to pay.

By comparing lenders, you will find that some offer better benefits in the form of interest rate, terms, and customer experience. Switching between lenders, just like switching banks, is not as difficult as you might think. If you are not fully satisfied with your current lender, consider changing them.

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Frequently asked questions

Before refinancing, you need to do your homework and think about what it means for your finances. If you feel there is an increased risk and that it might mean wasting your money, research more about it to understand your penalties or other costs. If it still seems expensive then refinancing may not be the best option for you.

The primary downside to typical refinancing is the amount you pay to get the new loan. Refinancing will cost you money because what you’re doing here is taking out a new mortgage to pay off the old one. That also means you’ll have to pay most of the same closing costs you did when you took the first loan, including application fees, origination fees, and closing fees.

The two most common are:

  1. Rate-and-term refinances: As the name suggests, rate and term mortgage refinancing change your mortgage loan rate and term. For instance, you can refinance a 10-year mortgage to a 20-year term.
  2. Cash-out refinances: Cash-out refinancing gives you a new mortgage and lets you borrow more than what you owe. You can keep the difference in cash and use it for temporary financial needs.

Getting a mortgage with lower interest rates is often the primary and best reason for mortgage refinancing.When interest rates go down, consider refinancing to shorten your mortgage repayment and pay fewer interest payments.

Mortgage refinancing is not as daunting as it sounds. Experts like Alpine Credits make it simpler for homeowners.