1 Lower Your Interest Rate and Payments
Today’s record low interest rates provide a great opportunity to home owners to lock in a new mortgage rate for a new term. This will provide you with long term security, a lower mortgage payment, and save you thousands in interest over the life of your mortgage!
2 Consolidate Debt
Consolidate Debts such as credit cards, loans, or lines of credit. If your monthly bills have gotten out of control, you might be able to refinance your home and pay them off. The advantage of doing this is to lower your total monthly payments.
3 Finance a Renovation
If you have already or plan to renovate your home, you will realize this can be a costly endeavour. Whether you are developing your basement, renovating your kitchen or bathroom, the costs can add up and the most cost effective solution is adding this to your mortgage.
4 Purchase an Investment Property
Mortgage rules now require a minimum 20% down payment to purchase investment properties. If you don’t have the funds available in liquid cash, refinancing your existing property to access your current equity is a great way to get started.
5 Purchase a Second Home
If you are looking to buy your children a home while they attend school, or a vacation home for the family, using the equity in your home may be the easiest and most cost effective solution. Many families are buying homes in other countries such as the United States or Mexico. It is nearly impossible to acquire lending in these countries and if you do the rates are much higher. Using your home equity for these purchases makes the most sense!