Mortgage Refinance  Brokers Toronto

Mortgage refinancing is a handy financial tool, utilized by countless homeowners in Toronto and across Canada. Refinancing a mortgage involves restructuring your current mortgage and negotiating with a mortgage lender for a new rate and monthly terms. This can be the same mortgage lender you currently have or you switch to a new lender. A refinance is the type of transaction where new money is added to your loan or the amortization changes. This can happen at maturity or during your term (but you may pay a penalty if during your term!) If you are looking to renew your mortgage with a different lender or exploring a change without changing your loan amount or amortization, this is called a “switch”.

When you remortgage with a new lender, the new mortgage will pay off the old loan, leaving you with a new loan and a new monthly payment to focus on.

Stonefield Mortgage works with homeowners in Toronto and the GTA to help them understand the full scope of refinancing their house and the commitment associated with their decision.

Refinancing a mortgage is similar to applying for an initial mortgage since they both require a new home loan.
During this process, your debt ratio, credit history, and income will be evaluated. Essentially, you’ll be required to provide the same information you provided when initially purchasing your house, including:

• Identification
• Proof of Income
• Assets, Debt, and Savings Details
• Relevant Tax Documents

You may also be required to pass a mortgage stress test. This test will determine whether you can repay your refinanced mortgage if interest rates increase. Next, you’ll submit an application to your favourite Toronto mortgage broker. Once you are approved for your refinance, you may be required to get an appraisal to help determine the value of your home.

At Stonefield Mortgage, we offer a simple and straightforward mortgage refinance application process. With this easy application process, we’ll get to work negotiating on your behalf – accessing our wide network of lenders for the best rates and terms, and making certain you get a product tailor-made for your goals and financial situation.

If you’re considering mortgage refinancing in Toronto, you should have a clear, holistic understanding of the steps, benefits and risks involved. That’s where our trusted mortgage brokers come in; they’ll help you navigate the process and determine whether refinancing is the right move for you.

Deciding to Refinance

The decision to refinance your house shouldn’t be taken lightly and can be a long-term commitment. When you refinance, you will have the option between 1, 2, 3, 4 and 5 year terms. It’s important to determine whether you have sufficient cause to begin the mortgage refinance process. Some reasons to refinance may include:

• Looking to Renovate Your Home
• Interested in Purchasing a New Property
• Looking to Invest in Education
• Beginning a New Business Venture
• Consolidating Debt
• Taking Advantage of Lower Interest Rates

Refinancing your mortgage can help you achieve any of these short and long-term goals.

Affording Monthly Payments

Living within your means is crucial to financial health and should be considered before applying for a mortgage refinance. Remortgaging your home can allow you to make changes to the amortization on your loan which can reduce monthly mortgage payments. The amount of money you’re able to borrow will depend on your home’s equity; the more you’ve paid into your mortgage, the more equity you’ve acquired. In Canada, you can receive a loan up to 80 percent of your home’s appraised value if you qualify.
It’s important to remember that new interest rates and terms may apply if you decide to remortgage your house. Before you apply, consider how much you can afford to borrow and how much you can afford for your new monthly payments.

Explore Your Mortgage Refinance Options

Refinancing isn’t a one-stop-shop experience across the board. In Canada, there is a wide range of lenders, from AAA and B to private lenders. Knowing the options at your disposal can help you determine if refinancing your home is the right decision. Sometimes it makes sense to keep your existing mortgage in place and look for a second mortgage if the rate on your existing mortgage is much lower than current market rates.
At Stonefield Mortgage, we work with homeowners in Toronto and across the GTA to help them explore their mortgage options. With access to top lenders and 15 years of real estate experience, we know what questions to ask and how to secure the best rates and terms for our clients.

The short answer is this: refinancing can use the equity of your home to your advantage.
For a longer answer, we’ve compiled a short list of common reasons homeowners in Toronto turn to mortgage refinance, including:

Lower Interest Rates

Refinancing can help you capitalize on lower interest rates (if available to you). You can also inquire about a longer amortization period or whether there are new conditions that can help you repay your mortgage ahead of schedule. Refinancing for better loan terms doesn’t have to equal taking out equity, although accessing your home’s equity is a viable reason to remortgage your house.

Accessing Your Home’s Equity

The more of your mortgage you’ve paid over time, the more equity you’ve accumulated. The more your home has appreciated in value since your last mortgage, the more equity available too! And in Canada, homeowners can access up to 80 percent of their equity, which can be used for a range of financial reasons – whether investing in your child’s education, renovating your home, or starting a new business.

Consolidating Debt

If you’ve accumulated multiple high-interest debts and are struggling to pay everything on time, it may be worthwhile to consider remortgaging your home to help consolidate. If you have enough equity to leverage, a refinance loan can help you pay off outstanding debts, so you’re only left with a single monthly payment. Debt consolidation is a tricky process for most people to navigate alone, so consider talking to a specialized mortgage broker about this option.

Refinancing your mortgage can help you meet your short-term or long-term financial goals, but there may be costs and fees associated with this process.

If refinancing requires you to break your mortgage before your term is up, you may have to pay a prepayment penalty, which will typically be either the greater of three months’ interest or the IRD — interest rate differential.
If you’re switching mortgage lenders, there may be a fee associated with breaking your mortgage with your current lender. These fees can vary depending on the lender but typically range between $200 and $350.

Since part of the mortgage refinance process involves your lender removing your current mortgage and re-registering with a new loan, you may have to pay a registration fee from your provincial government. This nominal fee typically sits at around $100. In most refinance cases you will need to have a lawyer represent you which currently costs about $1500 in Ontario after all legal fees and HST.

While both are common mortgage solutions, it’s important to understand the differences between refinancing a mortgage and renewing a mortgage.

Refinancing involves changing your current contract and negotiating a new loan with new terms and conditions. This can take place with the same lender, or you can choose a new lender if they’re able to offer better rates or a different mortgage product that suits your needs. Mortgage refinancing can occur anytime during your term or when you’re up for renewal — though each situation may incur different fees or penalties.

On the other hand, renewing a mortgage occurs when your term has ended – or “reached maturity.” You can decide to re-sign with your current lender at their offered rate, or you can work with a mortgage broker to shop around on your behalf and secure a better rate.

There are several reasons to take advantage of mortgage refinancing in Toronto, including but not limited to:

• Securing a Lower Interest Rate
• Consolidating High-Interest Debts
• Negotiating for Better Mortgage Terms
• Utilizing Home Equity for Future Investments

At Stonefield Mortgage, we understand the benefits of mortgage refinancing. We understand when it can work for people, and – crucially – when other mortgage solutions may work better. Speak with our experts about whether remortgaging benefits are a right fit for your financial situation. We offer transparent, experienced and client-centric guidance without ever “pushing” a single direction or product. In many scenarios, it won’t make sense to refinance or change your current mortgage – but it always helps to have a mortgage professional check your options first. Especially when it’s a service that is provided for free!

You can refinance your house if your loan-to-value ratio is below 80 percent. This ratio is computed by dividing your current mortgage balance and any outstanding debts secured against the property into the current value of the home. The new solution’s loan amount is limited to 80 percent of the value of your property as determined by an appraisal.

You can choose to refinance your mortgage before or when your current term is up, though there may be fees or penalties to consider. The knowledgeable experts at Stonefield Mortgage work with our clients to help them understand the conditions involved in refinancing and determine the best time to refinance.

A mortgage broker is a finance professional who helps borrowers communicate with mortgage lenders and advocates on behalf of their clients to secure the best mortgage rates and conditions.

As brokers, we’re responsible for doing your legwork so you can focus on your day-to-day financial responsibilities. When you submit a mortgage refinancing application, we’ll gather the appropriate paperwork, tap into our large lender network, explore your options, and (with your collaboration) pass your application along to lenders to be underwritten and approved.
Once the deal is approved, we as brokers receive a commission from either the lender, borrower, or both. If you are refinancing or switching to a AAA / A lender, the broker commission will come from the lender only.

Absolutely! Applying to refinance your home is no small feat, and you shouldn’t have to navigate those choppy waters on your own.

Mortgage brokers are real estate experts with a wealth of knowledge and insight. They have access to an array of lenders and know how to communicate with them to secure lower rates and better terms. Working with a broker can give you the peace of mind you need to focus on your everyday financial needs, knowing they’re advocating on your behalf and are working to find the perfect mortgage solution for your family.

Refinancing a mortgage in Toronto can be a long and tedious experience when done individually. Working with a seasoned mortgage broker is a more efficient and convenient way to find the right mortgage solution for you without taking on the stress and overwhelming nature of the process.

Mortgage brokers are industry experts. They understand the changing real estate landscape and how interest rates are determined. Since they have access to a wider range of lenders than the average Canadian, they can communicate directly with their network and shop around on their client’s behalf — ensuring they’re getting the best possible rate and terms.

Stonefield Mortgage boasts a winning combination of industry access, unparalleled know-how, cutting edge technology and client-first professionalism.
Need a bit more detail?

• We access over 40 top lenders – ranging from banks and credit unions to trust companies – meaning you have a diverse pool of options to choose from.
• We contribute our over-15-years of experience to help you make the soundest financial choices for your situation.
• We offer a wide range of services, including debt consolidation mortgages, mortgage renewals, private mortgages and mortgage refinancing in Toronto and the GTA.
• We leverage industry-leading software to compile your application and documents quickly, allowing us to offer quicker approvals and lower rates.
• And we do it all with the Stonefield Mortgage professionalism that our satisfied clients know and love!

Stonefield Mortgage is proud to be a leader in innovative mortgage solutions. With over 15 years of real estate experience, we know what it takes to negotiate with top lenders and advocate on our clients’ behalf.
If you’re interested in refinancing your home, we can help. Our mortgage refinance services are available in:

• Vaughan
• Mississauga
• Brampton
• Etobicoke
• Pickering
• Ajax
• Aurora Oakville
• Markham
• Richmond Hill
• Scarborough
• Newmarket
• Whitby
• Toronto

Contact Stonefield Mortgage today to set up a free 15-minute consultation.