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We hope you have had a great start to 2022. We sure have! In this edition of the G|B Real Estate Newsletter you will find lots of valuable information pertaining to the process of refinancing a mortgage and the possible benefits/opportunities that it could bring.
As always, to find last months Metro Vancouver real estate market updates scroll to the bottom of the newsletter to see what January had in store.
If you have any questions regarding the information in this edition of the G|B Real Estate Newsletter or want to chat all things real estate please don’t hesitate to reach out.
We wanted to discuss the topic of refinancing a mortgage as it is a constant area of interest amongst our clients.
So what is refinancing? Refinancing a mortgage means paying off an existing loan and replacing it with a new one. A mortgage is a long-term commitment, but there can be some wiggle room depending on what mortgage product you have. Today’s mortgage rates are almost certainly going to be lower than what you currently have. If you’re breaking an existing mortgage to refinancing, which is often the case, you’ll want to understand what your penalty is. This is most important if you have a fixed rate mortgage.
There are some things to consider when refinancing, whether it is spreading your payments over a longer period of time to reduce monthly costs, or securing a lower interest rate to make your deal more competitive or even switching from a fixed-rate deal to a variable one or vice versa, all are possible.
Reasons to refinance a mortgage? With the large increase in property values many homeowners have access to thousands of dollars in equity. Low interest rates are one thing but how much equity you have and what you can do with that equity is the real driving force. So, what can you do with that equity?
When should I refinance a mortgage?
There are many occasions when refinancing could be a worthwhile idea, including:
When better rates are available, saving you at least half a percentage point and preferably more on your current deal.
If you bought your home with a low down payment and needed to take out mandatory mortgage insurance, but now have enough equity to avoid this.
We know that we have packed in a lot of information in the description above so if you have any further questions or are thinking about refinancing your mortgage please don’t hesitate to reach out. We’d be happy to discuss this process further and even talk about potential real estate investment opportunities that could arise from refinancing.
If you are interested in learning more about refinancing your mortgage to purchase an investment property and build wealth through real estate click the link below to check out the article “Home Equity is Changing – What it Means to be a Real Estate ‘Investor'”. This article includes Glenn’s recent interview by Kerry Gold for Storeys Real Estate News Outlet of Canada.
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