Living in Hamilton? Trying to figure out if you should refinance your mortgage? The cost of fees aside, the benefits of refinancing make a convincing case for revisiting your existing mortgage. Many Ontario residents consider refinancing on a day-to-day reason, but what are the benefits?

 

The Advantages of Refinancing

The principal reason is obvious: to get a lower interest rate! Traditionally, the rule of thumb was that if you were lowering your rate by 2% you were going to save money – but some analysts now put that at just 1%. Not only are you saving money, but you are building equity faster in your home.

 

You can also shorten your mortgage’s term and become mortgage free sooner. This is a laudable goal, though there are arguments to be made in today’s low-interest climate that you can put cash to better use than paying off a low-interest mortgage.

  

By refinancing, you can access the equity you have built up in your home and apply cash to any other debts. If you are carrying personal loans or credit card debts, these are probably charging higher interest rates than a mortgage – so the sooner you can pay them off the better.

 

These are just some of the compelling reasons for refinancing the mortgage on your Hamilton home!