Toronto Real Estate in 2021: Is Now a Good Time to Refinance?

Toronto Real Estate in 2021: Is Now a Good Time to Refinance?

If you are considering refinancing, there are a number of things that will impact your decision. Mortgage payments are one of most people's largest monthly expenses, and refinancing can make these more manageable. Refinancing can also be beneficial if you are financially stable but worry about the future. The following information will help you determine if now is a good time for you to refinance your Toronto real estate.

Lower Monthly Payments

If your primary concern is that you will not be able to sustain your current mortgage payments, refinancing can help you adjust the amount to a lower monthly payment. This would mean increasing the length of your loan term, and it will take you longer to pay it off completely. However, there may be lower interest rates available now that you can take advantage of in order to save money along the way.

Improved Credit Score

Monthly payments, though difficult to maintain, provide a benefit as you go. In paying your mortgage on time every month, you are improving your credit score. Your credit score is always taken into consideration when a loan is being refinanced. If you have been diligent about paying your mortgage in the past, you may already qualify for a lower interest rate.

Stable Fixed Rates

An adjustable-rate mortgage might have required lower payments at the beginning of the loan and therefore appeared to be a better choice. However, if you discover that interest rates are lower now, securing a fixed-rate mortgage will allow you to have a predictable monthly payment. This can be a relief when the economy is going through times of uncertainty.

Equity for Immediate Expenses

If you have been paying a mortgage for several years, you have built up equity. The two ways you are able to use this equity as money now are by taking out a home equity loan or cash-out refinancing.

A home equity loan is a second loan that allows you to borrow back some of the money that you previously paid towards your home. It does not affect your current mortgage but is paid back as an additional monthly payment. Cash-out refinancing is different because it takes your mortgage and replaces it with a larger loan. This amount will be used to first pay off your original mortgage and then pay you the rest in cash.

Increase Equity in Toronto Real Estate

Real estate in Toronto is a valuable commodity and will be for the foreseeable future. Refinancing to build equity faster can be beneficial to your economic security in the long haul. By choosing to refinance in order to make larger monthly payments, you will reduce the number of years it will take to pay off your loan. Look for an opportunity to secure a lower interest rate and start building the equity you have in real estate faster while saving yourself money in the long run.

Refinancing is always a big decision, but it holds the potential for benefits in the immediate future and further down the road. Mortgage professionals are available for further assistance, and GTA Selling can help you with a referral. Call Nancy at 416-985-1486 or Dave at 416-894-4079 at


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