When you’re looking at\u00a0refinancing your home, you should always do so with the appropriate background knowledge about all the costs associated with it.<\/p>\n
There are pros and cons to refinancing your mortgage<\/a> and you can also discuss these and the general process with your real estate lawyer<\/a>.<\/p>\n You might look\u00a0into refinancing your home\u00a0in order to access the equity<\/a>\u00a0you have built inside the home or to obtain a lower interest rate.<\/p>\n Although this might be the best financial solution for you, it is critical to consider the cost associated with opting for a refinance before determining that it is the right choice.<\/p>\n Through refinancing your home, you will be eligible to access up to 80% of the property’s value, reduced by the outstanding balance on your mortgage.<\/p>\n Whatever your reason, you should know what you can get out of the process as well as some of the ways that it might impact your future financially.<\/p>\n There are two different types of refinances available in Canada: one at the end of the term and one within your term.<\/p>\n While you may be eligible to take equity out of your home or access a lower mortgage rate<\/a> while still in your mortgage term, you could be charged a pre-payment penalty.<\/p>\n You may also have to pay a mortgage discharge fee if you are switching lenders. This is typically between $200 or $350. Regarding the pre-payment penalty, this could be equal to the interest rate differential or three months\u2019 worth or interest.<\/p>\nReasons for Refinancing Your Home<\/strong><\/h2>\n
Two Ways to Refinance Your Home <\/strong><\/h2>\n