Refinancing

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. Therefor we’ll do our best to avoid no-frills lenders or other restrictive mortgages that only let you refinance when you sell your property.
When you refinance, the answer is: yes. When you switch from lender to lender just to improve the rate you won’t be able to borrow more to cover the costs. This means that the cost of penalty and legal fees will be paid directly by you.
This unique feature gives you more flexibilities, as you are allowed to re-borrow what you already paid in principle. You’ll need to make sure that your lender has this type of mortgage and its included in yours. In this situation you do not need to refinance in order to pull some equity. Most lenders that have this feature will give you an access to the principle you paid down, after accumulating a required minimum (20K for instance).
A higher penalty with your current lender won’t always allow you to improve your mortgage midterm. Extending the term with a current lender is your way to enjoy the lower rates they offer. It also protects you from rate hike. Even when you stay with your current lender, consult with us. At times we see that the “extend and blend” offer that our clients got from their bank was not to their advantage.