If you, like most Canadians, have been working hard to improve your credit score – paying your bills on time, not overextending your line of credit – since signing your mortgage a few years ago, you may be able to save yourself some money by refinancing your mortgage (potentially along with
Refinancing a mortgage can be done for a variety of reasons. For example, changing from a variable-rate to a fixed-rate mortgage to save yourself some money each month. Or using a refinancing to combine or consolidate your debt, reducing the amount of interest you’re paying on high-interest debt such as credit cards, a line of credit or student loans.
You may also use your home equity for investments, home improvements or college expenses.
While some people potentially face penalties for refinancing before the end of their mortgage term, that is often offset by the savings of a lower interest rate.