Refinancing Options and Debt Consolidation

It is possible to refinance up 80% of your home's value without needing CMHC!

Many clients have been taking advantage of the available lender refinance program, thanks to the major appreciation in housing prices during the past 7 years. Even though most people would not wish to refinance their home in order to pay off debts like credit cards and lines of credit or a vehicle loan; this option might make a great deal of sense for some individuals. It is a good idea to review this option a little more carefully. Below is a short checklist:

• Do you wish to have more funds available to purchase stocks and bonds or make additional investments?

• Are your creditors charging interest rates that are higher than the current mortgage rates?

• Are you finding that you are only capable of making minimum monthly payments? Are you stressed out from making as many as 4 or 5 multiple payments each and every month?

If you have answered yes to any of these questions, it might be a good idea to discuss your ability to take out equity for reasons like debt consolidation, renovations, combining mortgages, and asset management. It is important to discuss your options with someone who is qualified and whom you trust. Make an appointment with a consultant in order to have these loan options explained to you in greater detail. All cases are different and it is imperative that you understand your specific situation so that you can make the most informed choice for you and your family.

If your initial mortgage was insured, remember that you only pay the insurance premium on the new funds borrowed.

Requirements for Re-financing include:

Acceptable Loan Purchase:

• This program does not include mortgages for default management purposes. It is possible to make multiple advances to a maximum of 2.

• The purpose of refinancing may include: purchases on investments, renovations, asset enhancement, debt consolidations, and combining 1st and 2nd mortgages.

Eligible Properties

• Owner occupied properties include: investing properties and secondary homes with a max of 2 units.

• Existing properties but not for new construction; the max is 4 units with at least 1 of these units are to be occupied as the principle residence.

Loan-to-Value Ratios

The loan-to-value ratios or LTV represents the relationship between the actual property value and the balance of the mortgage. If you have a $75,000 loan and the property is valued at $125,000, you will have a 60% LTV. This is determined by dividing $75,000 from $125,000 = 60%. The maximum LTV for this particular program is a 80% loan-to-value ratio.

Options for Amortization

This mortgage option is currently available on extended amortizations up to 30 years.



Richmond Mortgage Brokers

  • Cash Back Mortgages
    Cash-back mortgages were more popular prior to the last economic downfall, the 2008 financial crisis. While they have not been completely written off as a worthy mortgage option, there are still some property owners that choose this option. ... More
  • Construction Mortgage Options
    Options on Construction Mortgages Currently, there are a few kinds of construction financing available. Though building a home can be quite a complicated endeavor, your mortgage should be quite simple. There are 3 categories within ... More
  • Why Equity Based Mortgages?
    For those prospective home owners who are unable to prove income or have a damaged credit history, an equity based mortgage can be a great option. If you currently have equity in a home or you can provide a large down payment, you may still be ... More
  • Plan For First-Time Home-Buyers
    Purchasing a new home and securing a mortgage is a huge commitment and is one of the most important financial decisions your will ever make. It is greatly beneficial that the process can be simplified. In order for you to get your mortgage ... More
  • HELOC or Home Equity Line of Credit
    A Home Equity Line of Credit is the process of using your homes equity to get a secured line of credit. With a HELOC, you can use this equity to be used for another purpose. For instance, these funds may be used to purchase a new vehicle or to ... More
  • Rental and Investment Properties
    Investment Property Mortgages Highlights 1) Amortization periods up to 35 years, with Variable and Fixed Rate Mortgages Permitted 2) Great Rates, quite close to the best rates possible 3) Loan to Value ratio of 80% on ... More
  • Mortgages For The Self-Employed
    CMHC and Genworth both recognize the unique challenges that are faced by self-employed Canadians. Genworth and CMHC offer mortgages loan insurance options for borrowers that are self-employed in order to help clients realize their dreams of ... More
  • Mortgages for Newcomers to Canada
    CMHC and Genworth offer special financing options to borrowers with permanent residence status and non-permanent status. These newcomers to Canada help to increase the nation's positive population growth and have also created a wider variety of ... More

Richmond Mortgage Brokers

Richmond Mortgage Brokers
Richmond, British Columbia

Phone: 778-732-0181
Email: