How To Start Thinking About Mortgage Refinancing Now
To curb a situation similar to the 2008 subprime mortgage crisis, increased rules and regulations have been imposed to ensure applicants do not default on their mortgage payments. These increased regulations may be a surprise for Albertans looking to refinance their mortgages. With that in mind, thinking ahead may put you in a better position when it’s time to renegotiate your mortgage.
Understanding Mortgage Refinancing in Alberta
The maximum equity that can be used up by borrowing in your home is typically 80-percent, meaning you retain a minimum of 20-percent equity. While this may not seem difficult, when you consider
Consumer Debt is a Larger Consideration Than Before
Lenders now place more importance on consumer debt to determine how an individual
The Bright Side to Mortgage Financing
Housing values have increased in Alberta and many have built equity in their homes despite living there for a relatively short period. By considering your home’s current value and things that may increase your equity, you may build over that 20-percent threshold sooner than you think.
In addition, mortgage refinancing remains viable due to interest rates remaining low. If you can get your consumer debt under control well enough to refinance, or by refinancing, you can save a considerable amount of money in interest over time and pay a lot less out of your monthly budget.
If you don't know if mortgage refinancing is a possibility for you, or you would like to learn your options so you can plan for a brighter financial future, contact us and speak to one of our Mortgage Mentors here at Dominion Lending Centres in Edmonton. We're here to help!Request Mortgage Info