Canada First Mortgage - Calgary Alberta

Refinancing Your Mortgage


Equity is the difference between the VALUE of your home and the amount left OWING on your mortgage…

Have you lived in your home for at least a year? Do you carry any monthly debt outside of your mortgage payment? READ ON to find out if refinancing or consolidating debt may help to save you money?

I would like to bring to your attention the amount of interest you're paying on your credit cards, your loans, and any monthly payment obligations that you pay interest on.  What is the average interest rate that you're paying between all of the payments?  Have you checked lately?  I know you're busy - I understand, but as life goes by and you keep paying high interest rates on your borrowed money, you may be giving the credit companies your vacation money!  A small difference in interest rates can mean thousands of dollars in the long run.

So where am I going with this?  Everyone knows that most borrowed money is not "free" - this is true.  But what if you could streamline your interest rates into one lower, more advantageous rate?  I'm guessing you would probably like that idea.  It's called consolidating your monthly payments.  By definition, the word consolidation means "the process of uniting".  In the arena of loans, you are taking your existing loans and uniting them into one payment. 

Let’s remember that mortgage interest rates are coming off of historical lows, generally beating out "unsecured loan" interest rates.  You probably already have a decent mortgage interest rate, and now you have accumulated monthly revolving and installment debt that, for the most part, is unwelcome and uncomfortable.  By consolidating your payments, you can effectively eliminate payments with high interest rates.  How much money would it save you on a monthly basis?  Yearly?  It can add up in a short period of time.  Let’s look at a refinance situation:

House Value: $280,000   Mortgage Payment:
Mortgage Balance:  $180,000    Accumulated debt Payment ($60,000):
Interest Rate:  6.55% TOTAL PAYMENTS:
House Value: $280,000   NEW Mortgage Payment:
NEW Mortgage Balance:  $240,000    Debt Payments:
Interest Rate:  4.40% TOTAL PAYMENTS:


* rate subject to change / based on a variable rate mortgage (prime minus .85%)

So when is it the right time to refinance or consolidate your debt?  The motivation is different for everyone.  Sometimes you need to consolidate to eliminate your high interest payment debts as seen in the above example.   You may find that it’s necessary to refinance your mortgage to take equity out of your home for many other reasons; personal reasons, take the family on a vacation, you want to renovate your home, etc.  There are many reasons to want to refinance, but sometimes the reason is that you HAVE to refinance.  Let’s look at another situation…

Foreclosure.  It’s not a nice word, but sometimes unforeseen and unfortunate events happen beyond your control.  It’s not the end of the world if you’re faced with foreclosure – there are options.  Foreclosure can be a bi-product of WAITING TOO LONG before refinancing?  Before having to try and sell your home quickly, your home can be saved through lenders that specialize in foreclosure protection.  Basically, it’s refinancing your mortgage through another lender, and bringing your payments up to date with the equity in your home!  We have extensive experience in foreclosure protection – we know that bad things happen to good people.  We are compassionate about your situation, and we understand.  You have options.

Second Mortgages / Line of Credit

Let’s look at the flipside to refinancing.  Maybe it really DOESN’T MAKE SENSE to break your current mortgage.  Perhaps it’s better to place a second mortgage on your home to access equity?  There are situations where this is absolutely called for!  Our experts know which situation is best for you – just call and we’ll talk it over!

Now what about those credit cards with high balances and interest rates around 11% - 20%?  How about that loan you have, or the combination of credit cards and a loan?  Maybe there are student loans that you would like to FINALLY get rid of?  Calculating the numbers may seem like a daunting task, but as mortgage brokers, we are here for more than just "shopping" around.  We focus on your unique situation, and strategize for your best interests.  Think you could lower your monthly payments? Contact us - we'll let you know!

Let us help put the money back in YOUR pocket!


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Canadian Mortgage Experts - Canada First
Dan & Stacey Mass
Calgary, Alberta
Direct: 403-650-6596

Fax: 1-866-377-4410

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