Mortgage Refinancing

Of course you can, but it’s not as recommended, as your savings potential is laid out at the time you take your first mortgage. It will be more difficult and much more expensive to refinance a mortgage that has been constructed by the banks. We recommend doing the first step with an independent mortgage broker with the thought of breaking your mortgage within the first 2-3 years.
Usually you’ll hear in the news that there are great rates available to the borrowers. This is your cue to call us. We, on the other hand, run an ongoing algorithm to mine all of our clients that might benefit from refinancing their mortgage and we’ll call so if you are to save a significant amount AFTER paying your penalty. We are known across Canada because of this phone call. And of course, if a new financial need arises, it's a great reason to consider refinancing your mortgage.
Penalty size would be the main criteria as to whether you’ll move out of your mortgage and refinance or stay with the current contract until your term is done and your mortgage is up for renewal. With a fixed rate mortgage your penalty may be 8 times (!) bigger than the variable rate mortgage. It’s a huge difference that may void all the advantages in refinancing. There are ways to lower your penalty. Again, its all about the way your initial mortgage has been structured.
Refinancing midterm is your main tool to saving money. When refinancing, you have to take into consideration costs like penalty, legal fees, etc. We at Sneg Mortgage Team will call you whenever we think you may benefit from refinancing. Therefore we’ll do our best to avoid no-frills lenders or other restrictive mortgages that only let you refinance when you sell your property.
Yes. The lender will usually allow to add the penalty, appraisal and legal costs. Just keep in mind that the point of breaking the mortgage and paying a penalty is a fantastic time to reassess your needs and see what else we should include into one very very cheap loan.