Refinance Mortgage in Ottawa Solutions

Refinancing your Ottawa mortgage can be an extremely useful and a beneficial financial tool. It can be used to unlock equity and/or change the terms of your mortgage, giving you peace of mind or an extra influx of cash when you really need it.

Let me handle the details, shoulder the stress, and worry about the specifics. I’ve done this hundreds of times. I’ll put your Ottawa mortgage refinance on my mind. You can just feel that peace of mind.

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Frequently Asked Questions

When should I consider renewing my mortgage?

You should consider renewing your mortgage when your current term is nearing its expiration date, typically within the last 120 days of your term. This allows you to explore new interest rates from various lenders. It’s a crucial time to review your financial goals, assess your current contract, and consult with me to determine the best option for your situation.

What happens at the end of my current mortgage term?

At the end of your current mortgage term, several options become available. You can choose to renew your mortgage with your existing lender or explore refinancing opportunities with different ones—a mortgage broker can help you decide. This is a critical time to reassess your financial goals, evaluate your current interest rate, and potentially negotiate better terms.

Can I switch lenders at mortgage renewal?

Yes, it’s possible to move your mortgage to another lender at renewal. However, it’s not guaranteed they’ll have better terms and conditions. When your current term ends, you can shop around and explore your options. While there are typically no costs associated with switching lenders at renewal, keep in mind that there may be penalties for breaking the mortgage before the renewal date.

What are the potential benefits of mortgage renewal?

Mortgage renewals offer several benefits:
  • If rates are lower at renewal, you can secure a new interest rate, potentially saving money on your mortgage payments. Keep in mind that the opposite is true if you renew in a higher-rate environment.
  • You can adjust the term length or amortization period to better align with your financial goals.
  • You can switch lenders to access better terms or new features.
  • You can reevaluate your mortgage in light of changing financial circumstances.

    What documents are required for the mortgage renewal process?

    The documents required for the mortgage renewal process may vary by lender and your individual circumstances. Typically, you’ll need to provide proof of income, a statement of your existing mortgage, and information about any outstanding debts or assets. Lenders may also request credit reports.

    Is it possible to make changes to the mortgage during renewal?

    Yes, it’s possible to make changes to your mortgage during renewal. These changes can include adjusting the interest rate, term length or even switching from a fixed-rate to a variable-rate mortgage, and vice versa. You can also consider making additional payments and altering the amortization period.

    How is the interest rate determined during mortgage renewal?

    Several factors determine the interest rate during mortgage renewal. The most significant influence is the current economic conditions, including the market interest rates set by the Bank of Canada. Your lender may also consider your credit score, financial stability, and the terms of your existing mortgage.

    What are the potential costs associated with mortgage renewal?

    There are typically no costs associated with mortgage renewal as long as the changes are made at your renewal date. If you decide to switch lenders, however, there may be a fee to discharge the mortgage from your existing lender.

    Can I pay off my mortgage early during the renewal term?

    When you’re mortgage is in a fixed contract, you can typically pay off an extra 15 to 20% per year without a penalty. If you switch lenders, the same is true. If you renew into an open mortgage, you can pay your entire mortgage off without a penalty.

    What happens if I miss the mortgage renewal deadline?

    If you miss the renewal deadline, many lenders will renew it to a six-month mortgage at a higher interest rate. If you switch lenders during those six months, there would be a penalty. But if you change mortgage products with that same lender during those six months, there typically wouldn’t be a penalty. If you want to switch lenders, you’ll have to wait for the six months to lapse to avoid a fee.

    How can I negotiate better terms during mortgage renewal?

    Negotiating better terms involves a few steps. Start by researching current interest rates and mortgage offers from various lenders. You can take this information to your current lender and express your intention to explore other options. This can often lead to a more competitive offer. Additionally, having strong credit and financial stability can improve your bargaining position. Keep in mind that when you work with me as your mortgage broker, I can negotiate these better terms on your behalf.

    Is mortgage insurance required during renewal?

    Mortgage insurance is typically not required during renewal if you’ve already gone through the initial approval process and obtained the necessary insurance. Mortgage insurance is generally mandatory for high-ratio mortgages where the down payment is less than 20% of the property’s value. Renewal involves renegotiating the terms of your existing mortgage, so if you’ve already met the insurance requirements, it doesn’t need to be reevaluated.

    Can I renew my mortgage if my financial situation has changed?

    Yes. In fact, mortgage renewal is an excellent opportunity to reevaluate your mortgage terms with your new financial situation in mind. If your income has decreased, for example, you can discuss different options with your current lender. Keep in mind that if you want to switch lenders, you’ll have to re-qualify. So, a negative change in your financial situation may make re-qualification more complicated than a positive change.

    Should I consider refinancing instead of renewing my mortgage?

    Refinancing involves replacing your existing mortgage with a new one, often with different terms or lenders. This can be a wise choice if you need to access home equity. Renewing, on the other hand, is an update to your contract, potentially with the same lender. However, you can also transfer your agreement to a new lender with better terms. This option is beneficial if you want to maintain the existing loan structure and don’t want to borrow more money.

    Why Settle for Less?

    Refinancing a mortgage isn’t a decision to be taken lightly, and so you deserve a broker who listens attentively to your needs. Whether you have concerns over rate differences, your home value or otherwise, I’m happy to assist. With personalized, proactive service and plenty of know-how, I can quickly spot any risk elements – and I remain transparent about what is and isn’t feasible. Rather than get your hopes up, I want to make sure you can secure a mortgage refinance plan that is sensible and worth your time. This is especially important when factoring in any penalties or other expenses.

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    Make Your Mortgage Refinance Plans a Reality

    Interested in expanding the triplex you own so you can add more units to rent out? Want to make an extensive, expensive renovation to your home? Or, perhaps you want to get a better rate on your existing mortgage. A good mortgage refinance can help with all the above and more, and many take out second mortgages to cover large upfront expenses related to their property. If you have good equity, it’s possible to secure these funds, and I’m happy to help you make sense of the options available to you. It’s my job to handle the hard work and alleviate any burdens – all you need to do is figure out which homeowning dreams you want to make come true.

    Years of Real-World Experience

    Whether you need to borrow money against your equity or are eager for better rates, I’ve seen and done it all in my years as an Ottawa Mortgage Refinance Broker. I can help you make sense of current market trends, secure the best rates, and work towards a solution that best aligns with your needs and budget. Once I have the information I need to get to work, my hands-off, hassle-free services will take care of securing an ideal refinancing option for you.

    Comfortable & Convenient Mortgage Refinance Service

    Unsure whether the bank has any limitations or restrictions in place on your current agreement? I’m happy to take a look and confirm the details for you. Or, are you unsure whether refinancing is something financially viable for you at the moment? Don’t worry, as I’m here to verify this. I provide streamlined, non-intrusive services to ensure you’re in the best place budget-wise with peace of mind.

    Important Considerations When Refinancing a Mortgage

    Over the last few years, more changes have been introduced to the mortgage rules in Canada. Some of these changes can affect refinancing a mortgage in Ottawa. These changes are important to know if you are thinking of refinancing your mortgage in Ottawa.

    In the past, one was able to refinance their home up to 95% of the value of their home. However, a few years ago, the government capped refinances at 80% of the appraised value of a home.

    Until recently, a refinance was considered an insurable product and with that, could be offered at a great low rate. However, with recent changes, the Office of the Superintendent of Financial Institutions and CMHC decided that a lender can no longer insure these products.

    For someone wanting to refinance, this now means that lenders are not offering the same low rates for refinancing a mortgage as for other situations such as a purchase mortgage. As well, some lenders are not offering a refinance option at all. Or, they can only offer a refinance option at a very high rate. The interest rate spread between an insured, insurable and uninsurable mortgage can be upwards of 0.55% difference now depending on the lender and product.

    In addition to the changes noted above, lenders are also qualifying a refinance now at the benchmark qualified rate, also known as a stress test. This rate is currently at 5.34%.

    When mortgage rules tighten, having more options in terms of lenders, products and rates is very important. This will help assure you are getting the best mortgage refinancing rates and options in Ottawa for your needs.

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