Quality Things to Unveil About Mortgage Refinance in Canada


For home buyers, the best part in COVID-19 is mortgage interest rates dropped to record lows in some of Canada's major cities. The top cities in the list are Ontario, Brampton, Oakville, and many others.

If you’ve been in the hunt for buying a house in the cities mentioned above, you may be able to lock in rates below 3%. Some could even see prices as low as 2.5%.

But refinance is another matter.


 At some major banks and lenders, interest rates for refinancing loans are significantly higher than those for purchase. That means if you’re refinancing, you’ll need to be extra thorough in your research. 

Many times it has been seen that a lot of Canadian residents of the cities mentioned above have difficulty in understanding mortgage refinance. Let's hear it out in this blog. 

In professional terms, a mortgage refinance is a financial transaction in which you replace your current mortgage with a new one to gain some economic advantage, for example, a lower interest rate or a change in the length of your payment terms.

Which are the Best Cases in Finance Dealing Where You Need to go with the Option of Mortgage Refinance?

ü  When you want to go with the option of low-interest rates for getting a new home.
ü  When you want to get out of debt faster.
ü  You're moving from an adjustable-rate to a fixed-rate mortgage to lock in a lower interest rate.
ü  You want to pull cash out of the equity in your home with a cash-out refinance.

When Should You Refinance Your Mortgage?

Interest rates are at historic lows. If you currently have a rate above 4%, this is a great time to take a look at a mortgage refinance. But your decision shouldn't depend only on the rate: It's important to consider how long you plan to stay in your home. As per the mortgage professionals, one will be staying in the house for at least two and a half years to make up the cost of refinance term.

How Much Money Can You Save With Refinance Term?

To get a sense of how much money you’ll save by refinancing your mortgage, you can turn to any of several online calculators. From the different tools, mortgage refinance calculator is perfect for looking after what is your break-even point, which you can determine how much money you can save over your loan by refinancing. 

Final Thoughts 

All in all, refinancing is an excellent way to secure a lower interest rate and pay off your housing debt faster with a shorter loan term. For seeking complete information on mortgage refinance rates and loan guides, never hesitate to connect with RateShop.ca! Recognized by Canadian Mortgage Professional as one of the “Top Independent Brokerages in 2020”- you can collect all quality information on mortgage comparison to mortgage lenders hassle-free!

Location: Mississauga, ON, Canada

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