Remortgaging, in the simplest terms, is taking out a new mortgage and using the proceeds to completely pay off the existing mortgage. While this may not seem like it provides any benefit to the borrower there are in fact some very good reasons why you should consider remortgaging:
- Debt Consolidation
This is the most common reason people look for remortgaging options. If you are locked into a higher interest rate mortgage then switching to a lower interest rate while taking out some equity to pay off other debts may be cheaper in the long term
- Securing a lower interest rate
If your existing lender isn’t able to willing to offer you a lower rate when your mortgage is up for renewal then remortgaging to a new lender with payment options that better suit you is an excellent idea
- Make home improvements or repairs
If you’re perfectly happy with where your home is but need to update the kitchen, add a sun room or maybe a garage then remortgaging can help you get some equity out of your home which you can then use to improve or repair the home
- Getting at some of the equity in your home to buy an investment or vacation property, stocks or anything else
More and more people are looking to purchase another home or condo for investment purposes, or to make an investment in the stock market.
- Helping children through college or university
University tuition is expensive, and its just one of the many financial hurdles that students need to overcome these days. If you want to get access to some funds to help pay for your child’s university education then remortgaging is an easy way to do it
If you’re looking to get access to some of the equity in your home for these or any other reasons then First and Second Mortgages can help. Your second mortgage in Canada is just a phone call away. Call First and Second Mortgages at 1-866-405-1228 and get started now.