Benefit of Refinancing Your Mortgage: Advice from a Real Estate Lawyer
Two out of three households in Canada own their home. This is the highest homeowner rate in Canada since 1971.
If you are a homeowner in Winnipeg, have you ever considered refinancing your mortgage? It could make your life easier and save you money.
Refinancing a mortgage means you are exchanging your original mortgage with a new one. A lender pays off (refinances) the old mortgage using the new one.
Why should you consider refinancing your mortgage? Your expert real estate lawyer in Winnipeg has the answers. Let's explore the truth about refinancing your mortgage
Benefit #1: Lower Your Monthly Payments
Life changes, and it can be beneficial to reassess your monthly mortgage payments when it does.
Changes to your budget due to life events (like having a baby) or decreases in income levels can make keeping up with mortgage payments stressful. Refinancing your mortgage allows you to adjust your monthly mortgage payment. It helps people afford their homes despite income and budget fluctuations.
It also helps that when you refinance, you may get one payment-free month while all of the paperwork gets processed. For some Canadians, a mortgage-free month allows them to focus on other debts or spruce up their savings.
Benefit #2: Keep the House after a Divorce
Refinancing your mortgage is the ideal solution for couples going through a divorce. While divorce is one of the most stressful life changes a person can experience (especially during a global pandemic), refinancing your mortgage can make it easier for one spouse to keep the house.
Separating couples can refinance a joint mortgage into a single one. One spouse gets to keep the house and will continue making mortgage payments. The other is released from the loan and is no longer responsible for the property's finances.
When refinancing during a divorce, the spouse keeping the mortgage will apply for the refinance with their sole income and credit score. If the spouse is receiving alimony or spousal support, they may use that income to qualify for the new loan.
Benefit #3: Pay off Your Debts Quicker
Home loan refinancing allows a person to adjust the length of their loan.
If your income increases and you can afford higher monthly payments, refinancing your mortgage with lower terms means paying off your debts faster.
Decreasing your 30-year mortgage plan to a 15-year one allows you to own your home sooner rather than later. It can also save you money in interest payments and help you build equity faster.
The Best Real Estate Lawyer in Winnipeg, at Your Service
There are many advantages to refinancing a mortgage, from reducing interest payments to keeping a home after a divorce.
If you are considering refinancing your mortgage, let your local real estate lawyer in Winnipeg help.
Cassidy Ramsay is the expert team in real estate law. We are the professionals you can rely on, from preparing residential leases to securing title insurance for new and existing properties.
Schedule a consultation to learn more about how we can help you refinance your mortgage.