For most homeowners, mortgages take a considerable chunk of their paychecks. Making sure your budget is up to date is important to ensure monthly cash flow.

In simple language, mortgage refinancing is getting a new mortgage to replace an existing one. It has several perks when taken at the opportune time and for the right reason. In some cases, like when you have too much debt or a bad credit score, refinancing can be risky.

When should you then consider mortgage refinancing? Here are a few good examples:

To Take Advantage of Low-Interest Rates

Breaking a mortgage contract can attract prepayment penalties. It’s okay to be cautious about the consequences, but it’s essential to look at the bigger picture. A lower rate may not always put you financially ahead in the long run.

Your lender may charge a penalty equivalent to three months’ interest if you terminate a variable rate mortgage. With a fixed-rate mortgage, your penalty will either be the interest rate differential penalty (IRD) or three months’ interest. A mortgage refinancing expert from  can assess your situation and advise if refinancing makes sense.

To Renovate Your Home

Home renovations can increase the market value of your home. You are able to refinance your mortgage to pull out equity to update your kitchen, bathroom, or even replace your roof. Talk to a mortgage professional to be sure that this is the right decision for you.

To Consolidate Debt

Life can be frustrating when you have several high-interest debts. You may have credit card bills, a car loan, and a line of credit at the same time.

If you have substantial equity in your home, you can refinance your mortgage and use the money to pay the debts. One monthly payment is more manageable.

To Increase Your Monthly Cash Flow

As we have discussed, it’s sometimes wise to refinance to a mortgage with lower interest. It can potentially reduce your monthly installments, meaning you’ll spare some dollars every month.

If you are continually struggling to meet your economic obligations, refinancing may free up some cash.

Applying for Refinancing

If you’re considering refinancing your first step should be to call a mortgage broker. They will discuss with you :

1. Whether you need the loan and if refinancing suits you
2. Monthly repayments
3. Your credit situation
4. The associated costs

If refinancing is a fit for your situation, your mortgage broker will help you with the next steps in the process.

Mortgage Refinancing in Edmonton

Mortgage refinancing is beneficial to the borrower in some select instances. Lower interest rates should not be the only inspiration to enter into the arrangement. There can be penalties involved, and most likely, you will be extending your loan period.

If you are looking for a mortgage refinancing service in Edmonton, Jamie Arthurs Mortgages will assist you. You can visit our website to learn about our services in more detail.

Talk to us today, and our experienced team will address your concerns about mortgages and refinancing.

When it’s time to purchase your first home, taking care not to miss any steps can help smooth out the process and save your money and time. Finding the ultimate checklist can help you remember all necessary steps and expedite the process of buying your first home. Let’s take a look at some questions you should consider. Contact us to lean more.

Is Homeownership Right for You?

This may seem obvious, especially if you have your savings ready and are already perusing listings in Alberta. However, it’s critical to break down the question into several parts that affect buying your first home.

• Are you financially stable? Take a critical look at your income, expenses, and debts and consider what additional expenses could mean for your financial situation.
• Are you financially disciplined enough to handle a large purchase? Buying your first home could mean adjusting your lifestyle to ensure that you meet all monthly payments and avoid accumulating more debt for several years.
• Are you ready to spend on home maintenance and repairs? The state of a home depreciates over time. You’ll need to spend on the maintenance of your compound, contribute to homeowner’s association fees if necessary, and also update broken and worn-out appliances.
• Are you ready for the permanence of homeownership? Buying your first home takes time and repaying your mortgage could take up to 30 years. It’s critical to consider if you’re ready for that level of commitment.

Do You Have the Right Support?

Buying your first home isn’t a solo project. It would help if you had the assistance of several experts.

• A mortgage broker to help you find an ideal lender to get you pre-approved and guide you through the home buying process.
• A real estate agent to help you find the best deal and negotiate the home’s price (especially if repairs are required) when buying your first home.
• A real estate lawyer to help you close the transaction.

Do You Qualify for the First Time Home Buyers Credit?

Buying your first home is a costly venture. Closing costs, home inspection fees, legal fees, and insurance payments can quickly add up. You can seek relief from some payments through the first-time home buyer’s tax credit (HBTC). This a tax rebate from the government that is non-refundable and must be claimed within the first year of purchase. You can receive up to $750 to make your life easier.

What Type of Home Do You Want?

Before you start shopping for a home, there are some things to consider.

• How long would you like to live in that house? Five, ten, fifteen, or even thirty years?
• What is the neighbourhood like? Where is the house located? Is it close to your workplace?
• What is the size of the home? Is it a condo, a bungalow, or a duplex?

Tips for Managing Your Mortgage

Before you sign a contract for a mortgage, consider the following:

• A structured financial plan and monthly budget will help you buy a house within your means
• Consider the impact of increased interest rates on your mortgage payments
• Can you negotiate the price of the home and the terms of your mortgage?

Buying Your First Home with Dominion Lending Centres?

With a Dominion mortgage broker, you can scrutinize all the details of your mortgage application, get pre-approved, and also initiate the home buying process. We have walked several first-time homeowners through the process and would gladly help you too. Contact us today for assistance with your first home in Edmonton.