Refinancing your mortgage to better your financial situation either through paying down debt or investing in your current home or an additional investment property – particularly in a low rate environment – is a wise move. But the biggest issue with breaking a mortgage early is that you may face a large penalty depending on how far you are into your current mortgage term.
The key is to look at the penalty and weigh the pros and cons based on how much the equity could help your finances right now versus waiting out your current term. Wondering how much you could free up through a refinance? Use nesto’s handy Mortgage Refinance Calculator to see how you can benefit from tapping into some of your home equity.
Tip: You can access up to 80% of your home’s value minus the outstanding mortgage balance through a refinance
Mortgage Refinance Calculator
What is a mortgage refinance?
When refinancing a mortgage, you’re taking out a new loan and paying out your existing one. Sometimes people refinance to simply take advantage of a lower interest rate that will pay off over time. In many cases, people refinance to access funds for a specific reason, such as consolidating debt, financing renovations or buying an investment property. See: Here’s How You Can Benefit from Refinancing Your Mortgage
Common reasons to refinance your mortgage
There are two reasons why Canadians refinance their mortgages:
- Lower your mortgage rate. When interest rates are low, it’s always smart to examine your options. Often times, the new lower rate can save you money over time even if you have to pay an upfront penalty to break your current mortgage contract early.
- Access home equity (cash). Improving cashflow by freeing up home equity is a terrific way to use that equity to your advantage and lessen your stress by ensuring your finances are not stretched too thin each month. Other popular ways Canadians put home equity to use includes: completing home renovations; purchasing an investment property; and sending kids to school. nesto can help you access up to 80% of your home’s value minus the outstanding mortgage balance through a refinance. See: When is it a Good Idea to Refinance Your Mortgage
Tip: A new lower interest rate can save you money over time even if you have to pay an upfront penalty to break your current mortgage
How to use the Mortgage Refinance Calculator
Simply plug your details into nesto’s Mortgage Refinance Calculator and we’ll help you decide if refinancing your mortgage makes sense at this point in time. And if now is a great time for you to refinance your mortgage, then nesto will find you the lowest rate.
How nesto works
We offer all the help of a mortgage broker, without the commission. Simply put, our salaried mortgage advisors are rewarded based on your satisfaction. We’re here to help you reach your goal and guide you through the complicated world of home financing. #yesyoucan #empowermentisthenewsexy
Every mortgage professional knows the market’s best rates every time they check their email. Only a few of them will give you that rate without making you work for it. nesto’s here to change the industry for this very reason. You always get the best rate upfront with nesto.