There are many different reasons why you may want to refinance, or increase your existing mortgage:

• To consolidate non-mortgage debt
• To pay for your child's University tuition
• To make improvements on your home
• To pay for that dream vacation you've always wanted to go on
• To purchase other property for investments
• To purchase a second home or assist your child with a down payment on their first home
• The list is endless.

There are many things to consider when considering a refinance:

Consolidating your Debt

1. Most credit card debt is at an interest rate that is much higher than your mortgage rate
2. Calculate the total minimum monthly payment of all your debt
3. Use a mortgage calculator see how much your monthly mortgage payment will go up if you increase your mortgage by the amount you need to get completely OUT of debt, make sure you use today's current interest rates to calculate (see rate chart)
4. Most likely the new mortgage payment is going to be significantly lower than that what your minimum monthly debt payment is
5. Time to call me to discuss your refinance!

Investing

• Many people are taking advantage of the equity in their primary residence and using it as a down payment on a rental property
• With the quick appreciation of Alberta real estate, it is a smart investment
• Utilizing your home in a HELOC allows you to actually write off all of your interest by investing it back into real estate
• Use the equity in your home to use for investing in the stock market, long term investments

Tapping into your Home's Equity

With the sudden immense increase in Home Values in Western Canada, more and more consumers are looking into tapping into their home’s equity as a source of quick cash.

This has become one of the largest trends I have seen since becoming a mortgage professional over the past 5 years.  Ever since that fateful day on September 11th six years ago, consumers have been looking to real estate and other hard assets in lieu of other types of investments, such as stocks, bonds and commodity trading.

Since mortgage rates are lower than they have been in 50 years, this makes the equity in consumers homes that much more desirable.  Investors have more options and lenders and insurers are making the money available now via more products than ever before.  All the new products available to Canadian consumers also can lead to more confusion.

In western Canada, if you have owned a property for the last 2-4 years, you can pretty confidently assume that you have a nice piggy bank of equity built up since your last renewal, or since you first purchased.  Now you need to develop a strategy with regard to that equity, and make sure you have a plan to make it work for you, and not against you. 

• Where do you want to be in 5 years?
• What do you see that money from your home doing for you?
• Do you plan on buying a rental property (or two) or do you see growing your business?

As you can see, there are many things to consider.  You obviously want to make that money grow, and make it work for you and your long term goals.  Part of tapping into your home equity involves a plan, and your desired timelines for being mortgage free.  Most of us eventually would like to be mortgage free, and our long term goals always include that place, as a final destination.

There are various products to choose from, depending on your long term goals and what type of access you want to those funds.  You can get a mortgage with a fixed portion, and a line of credit portion.  These are useful, in that as you pay down your fixed portion, it frees up the balance in your line of credit for convenient use at your leisure.

Call me today for a free consultation.