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Mortgage Refinance | Save More Money and Build Your Equity Faster

Posted by  on  03-02-2020

Historically, the rule of thumb is that mortgage refinancing is a good idea if you can reduce your interest rate by at least 2%. However, many lenders say 1% savings is enough of an incentive to refinance.

Reducing your mortgage interest rate not only helps you save money every month, but it also increases the rate at which you build equity in your home.

What can you do with more money every month? How about: (just a short list!)

  • Fatten up your RRSPs
  • Invest more (i.e. downpayment for investment properties, vacation home,…)
  • Save more for your child’s RESP
  • Manage consumer debt

How Does Mortgage Refinance Work?

Basically, a mortgage refinance replaces your current home loan with a new one. It requires going through qualifying for the loan, just as you had to meet the lender’s requirements for the original mortgage. You file an application, go through the underwriting process and go to closing, as you did when you bought the home.

Often the funds move from one lender to another without you ever touching it. Ideally, you’ll qualify for a new loan with more favorable terms than your current loan.

When Does It Make Sense to Refinance?

There are many reasons why it makes sense to refinance, let’s list out the main ones:

  • The mortgage rates drop and you want to take advantage of the lower interest rate
  • When you want to switch from a variable rate mortgage to a fixed rate mortgage, especially if you plan to be in your home for awhile.
  • Your credit score has improved
  • Taking cash out of your home
  • Consolidate Debt
  • You got a divorce and want to refinance to remove one person’s name from the mortgage

Why Refinance With a Mortgage Broker vs Your Bank? 

At Butler Mortgage, we absolutely stand by this statement: “If you are thinking about REFINANCING your mortgage, the right person to contact is a mortgage broker.”

We do a lot of the heavy lifting like researching your mortgage terms (many times people don’t understand the terms they have or have misplaced their documents), shopping and contacting multiple lenders on your behalf and do everything necessary to close the deal. 

And, you don’t pay us to do any of those. 

We have virtually unlimited access to leading financial institutions from across Canada. This guarantees you a huge range of mortgage options to choose from, so finding one that fits your needs precisely is simple.

We study rates daily and always know where to find the most competitive ones. Plus we know how to negotiate with lenders to ensure you’re getting the best available deal. 

We find deals you can’t get anywhere else.

Read what recent clients have said about working with Butler Mortgage:

I’ve worked with Butler Mortgage twice now on two refinances and they were very easy to deal with. I do not live in the same city but it was very seamless with communication through phone and email to access the necessary documents required and requested. I would recommend them to anyone looking for mortgage financing and will continue to use them for our future needs. ~ Jeff Mackie

So impressed with Butler’s superior service. They are organized, efficient and available. The rate was great! We will be saving so much money over what the bank could give us as their best rate. The process was painless and the documents were signed at our home, very convenient. If I knew how easy the process was with Butler I would have switched from our big bank way before. ~ “Guy in Walker” 

Not only did they get me the best rate, they did a rate audit part way through the process and got me an even better rate with a major bank. I also asked for the terms of the mortgage to be changed and it was no problem to do so. I also found them to be extremely responsive. ~ Marcel Gort

Great experience dealing with the butler mortgage team, we had a tough file but they worked with us to make sure we had what we needed to get qualified and worked closely with us through the closing process to make the process as easy as possible. The agents were all so friendly and helpful especially Dru who was absolutely amazing, helpful, knowledgeable and overall just excellent. Thank you again for helping us with the mortgage process. ~ Andrea Podczerwinski

 


Get a Mortgage Quote (No Obligation)

At Butler Mortgage, we offer a no-fee, no obligation mortgage approval and mortgage quote that help simplify the entire process. We do a lot of the heavy lifting, shopping and contacting multiple lenders on your behalf. And, we can do all of this over the phone.

If you are in the market for a home purchase, mortgage renewal, mortgage refinancing, debt consolidation, CONTACT US any time and let’s start the discussion.

 

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