Canada Home Mortgage Refinancing: What you need to know up front

Canada Home Mortgage Refinancing is on the rise. According to the Canada Mortgage Housing Corporation (CMHC), in 2006, 71% of borrowers refinanced their existing mortgage before the term was up. This brings us to the first thing you need to know about Canada Home Mortgage Refinancing: Choosing a lender.

Canada Home Mortgage Refinancing: Why it’s beneficial to work with your existing Mortgage Broker

According to the National Post, 81% of borrowers who refinanced did so with their existing lender. While shopping around is always advised when refinancing an existing mortgage, this strategy can be beneficial.

First, your current lender will already know your financial history, so there’s likely to be less paperwork.

Second, as you have an established relationship with him or her, keeping that relationship can work in you favour in future financial transactions (such as obtaining a small business loan).

Third, presumably you chose this lender because you did some research last time around. Barring any major changes, this lender should be able to accommodate your existing financial needs.

Canada Home Mortgage Refinancing: Getting the best rate

A good payment history on your current mortgage is critical if you want to get the best rate when you refinance your existing mortgage.

If you have no late payments, getting the best rate at the time of your Canada Home Mortgage Refinancing should not be a problem.

Canada Home Mortgage Refinancing: Fixed Rate versus Variable Rate

If you’re going to refinance, it’s almost always best to refinance into a fixed rate as opposed to a variable-rate mortgage. Otherwise, you may find yourself having to refinance again in a few years.

Barring any unusual life circumstances (e.g.: you only plan to stay in the house for a few years; your job is nomadic; and/or you plan to start/grow your family beyond what it already is) a fixed-rate mortgage is almost always the best option.

Canada Home Mortgage Refinancing: What you should know about Title Insurance

Mortgage fraud is on the rise. According to the Canadian Bankers Association, there is no central organization that collects statistics nationally. However, all indicators are that mortgage fraud in Canada is increasing. According to the Criminal Intelligence Service Canada (CISC), losses from mortgage fraud run into the hundreds of millions of dollars annually.

One way to protect against this is Title Insurance. Title Insurance not only protects against occurrences of fraud, but also against such things as property easements, survey irregularities, heir claims, and more.

In most instances, when a lender requires Title Insurance, it is only for the duration of the loan. However, borrowers can extend this coverage for any length of time they wish – even to cover properties once they are willed to heirs!

Summary: Canada Home Mortgage Refinancing

Use a dependable lender, get the best interest rate and obtain Title Insurance. Covering these three important areas should make your Canada Home Mortgage Refinancing a relatively simple process.

Mortgage interest rates are subject to change without notice. We attempt to maintain accuracy on our website, however, mortgage information on this website should be used only as a guideline.