Mortgage Refinancing

Are you wanting to renovate?  Or perhaps you need a new furnace or water heater?  Maybe you would like to consolidate your debt?  All of these are possible with mortgage refinancing.

Wondering What Your Mortgage Refinancing Options Are?

What can I use the funds for?

Home improvements ~ Would you like to update your kitchen?  Replace the windows?  Furnace?  Water Heater? Most home improvement projects would qualify.

Consolidating your debt ~ Moving all or even some of your high-interest debt can increase your monthly cash flow and save you money.  Good debt vs Bad debt, having high-interest debt isn’t always a bad thing.  Your mortgage broker can help with all of the details and together you can come up with a plan.

What should I know before I refinance?

Can I refinance anytime?  One of the best times to refinance is when you are up for renewal.  This way you are renewing a contract, therefore, avoiding extra penalties and fees.  However, this timing may not work for you.  Refinancing mid-term will mean some penalties and fees.  Often, these costs can be included in the new mortgage.

How much extra can I access?  Lenders will only allow you to access the equity above 20%.  To calculate this you would take 80% of appraised property value and subtract the current mortgage amount.  This amount = the excess equity.  If the number is negative, sadly you do not have enough equity built up yet to borrow against.

  • Property value = $400,000 X 80% = $320,000
  • Current mortgage = $300,000
  • $320,000 – $300,000 = $20,000 of excess equity.


Refinancing to renovate

The Process

  1. Complete our online application and client consent.
  2. We will review the application, pull your credit bureau and get to work!
  3. You will supply your supporting documents.  We have a great tool that allows you to upload pictures right from your phone!  Plus it’s secure!  We’ll supply the link when the time comes.
  4. We will send it off to the lender for approval, the usual turnaround time is 24 – 48 hrs.
  5. The lender provides a commitment letter ~ which will outline the mortgage product, terms, rate, pre-payment privileges, lender commitments, and client expectations.
  6. Review and sign the commitment letter ~ we will get together in person or virtually to discuss the commitment and have you sign.
  7. The new mortgage is instructed to your real estate lawyer.
  8. You sign with the lawyer.
  9. Receive funds.

We hope this helps fill in the blanks.  We are always here to help answer any questions you may have.  Trust me, there is no such thing as a silly question when it comes to your mortgage.  We want you to feel informed and comfortable throughout the process.  Refinancing your mortgage can leave you with questions.  Don’t be shy!


The Mortgage Group logo

Mortgage Broker No 315872