In its simplest form, home mortgage refinancing involves replacing or supplementing an existing or matured mortgage with a new mortgage loan. When you refinance, you may simply replace your existing mortgage, or add an additional mortgage to the existing mortgage.Typically homeowners consider refinancing for the following reasons:
To take advantage of reduced interest rates or better mortgage terms that may have become available. As penalties may apply when a mortgage is discharged before maturity, serious consideration may be necessary to determine whether attracting such additional fees is worthwhile.
To build up equity more quickly by converting to a loan with a shorter term.
To facilitate a major home renovation
To draw on the equity their home to consolidate debt, obtain money for a business investment or major purchase or to contribute to their children’s education.
Your financial advisor or mortgage broker may be able to offer a number of appropriate financing options to you. Legal representation and advice is necessary to complete your refinancing by registration of your new mortgage on title.Contact Toronto real estate lawyer Shashi Raina by email or by telephone at (416) 972-1781 for consultation, without fee or obligation, to discuss your needs and requirements.