Is it the right time to refinance? Countless Canadian news outlets have recently reported that the ratio of Canadian household debt to disposable income has hit a new record high. As rates are steadily increasing now might be the perfect time to refinance your current mortgage. As interest rates continue to rise, so will housing prices, so you may have more equity in your home than you think you do. Having more equity in your home opens up new opportunities to consolidate your high-interest debt. Using the equity in your home can help you solve your personal debt situation while letting you keep your home. Rolling your existing debt into one payment knocks out those high rate credit card payments into low single rate interest rates, which can give you a clean start.

Not only can refinancing lower your current payments and help you pay off your existing debt more quickly, it can save your credit score. Of course, we need to do the math on your current mortgage penalty. If you are locked into a fixed rate, you’ll have to pay a penalty to escape your existing deal with your bank. If you have a variable rate mortgage, the formula is simple: it will cost you three months interest on the existing mortgage. If you are locked into a fixed rate the penalty will most likely be interest rate differential, which can be scary in some instances, but we will be there to help you make the right decision.

Every situation is different. We want to help you save money, not spend money, so we’ll review your unique situation. Today might be a great day to refinance. It’s worth doing your research to see what your options are and then act swiftly before interest rates rise. Call us today to see what we can do for you!