What is a Refinance?
Refinancing your mortgage means renegotiating your existing mortgage loan agreement. When renegotiating, you may be able to take out equity in your home for the following:
- Pay out debt (creates lower monthly payments)
- To purchase investments or maximize your RRSP contributions
- A down payment on a new home or rental
- Help with the kids' education costs, your dream vacation, perfect vehicle, a home renovation and more
Contact me today for free calculations to see if a refinance is the right move for you.
How much equity can I take out from my home?
Normally, lenders allow you to take out up to 80% of your property value. Ex. if your house is worth $600,000, the maximum mortgage you can take out is $480,000. If you currently have a mortgage on your property of $380,000, this gives you $100,000 in cash to use for renovations, debt, a down payment, etc.
(600,000 x .80 = $480,000 maximum mortgage)
($480,000 - $380,000 = $100,000 extra equity available)
Keep it mind that just because you have all this equity, doesn't mean you can take it out. Lenders require proof that you make enough income to make payments on a $480,000 mortgage.