Are You Thinking About Refinancing? Talk to Us About Our Personal Borrowing Solutions

As a homeowner, refinancing your loan can be a beneficial financial move for several reasons. At BlueRock Wealth Management, we now offer personal borrowing solutions, and we have seen firsthand how refinancing a mortgage can benefit homeowners.

We recommend refinancing at the conclusion of your mortgage term, so you can avoid penalties. However, the timing of when you should refinance might vary, depending on your goals. While you may want to refinance to unlock your home’s equity for a renovation or larger expense, like college tuition, others may want to refinance to consolidate their debt, switch their mortgage product, or lower their interest rate.

If you are still on the fence about refinancing, here are a few ways refinancing with our personal borrowing solutions can help:

• Lower your interest rate — The Bank of Canada continues to lower interest rates, so now is a good time to refinance to lower your monthly mortgage payments and secure a better rate. Experts believe the Bank of Canada may move the overnight rate down to 2.75% as soon as next year.

• Consolidate debt — In many cases, the interest rate for a mortgage is less than what a credit card company would charge you, so consolidating debt through the refinancing process is an excellent way to cut back on the total amount you owe.

• Use your home’s equity — If you have projects you have wanted to get done around the house, or a large purchase you need to make, refinancing is a great way to take advantage of the equity you have in your home for larger expenses.

• Switch mortgage products — If you have an adjustable-rate mortgage or a variable-rate loan, refinancing can help you lock in a lower rate if you switch to a fixed-rate mortgage. You can also change from a fixed-rate to a variable-rate to take advantage of decreasing rates.

The Government of Canada also has some changes coming that will make it even easier to refinance when your renewal period arises. For example, as of November 21^st, anyone with an uninsured mortgage will no longer have to pass the stress test. And, starting on January 15, 2025, the government will let default-insured mortgages be refinanced to build a secondary suite.

No matter what your plan is or your current situation, we can provide expert advice on personal borrowing solutions, factoring this into your financial planning goals. Contact us today to speak with an advisor.