Mortgage Refinancing: What Should I Know?

What is Mortgage Refinancing?

As a mortgage broker and consultant in Vancouver Lending Experts offers services and advice across a whole range of areas. Some of the most common queries we receive are about mortgage refinancing.

Mortgage refinancing is when you pay off your current mortgage and create a new mortgage. This may or may not involve consolidating two mortgages into a single loan.

Why Should I Seek Mortgage Refinancing?

There are all kinds of reasons. Perhaps interest rates have decreased. Perhaps your credit situation has improved and you feel you may qualify for a lower-rate mortgage. Perhaps you want to switch to an entirely different type of mortgage.

You may want to increase the length of your mortgage in order to decrease the amounts you have to pay every month. You may want to decrease the length of your mortgage to avail of lower interest rates. You may want to change from a variable rate mortgage to a fixed term mortgage or vice versa. You may want to keep the type of mortgage you already have but adjust the terms. Sometimes people refinance their home for a sum larger than they owe. This allows them to claim the difference as a cash sum.

Where Should I Go For Mortgage Refinancing? 

Before you try to negotiate with your bank and definitely before you consider cash-out refinancing, you should seek advice from your mortgage broker and consultant in Vancouver. You will need to determine your eligibility before you seek refinancing. Many things will be taken into consideration, including your assets, your income, your credit score and any other outstanding depts. The current value of your house and the amount you want to borrow will also affect the terms you receive.

Lending Experts is a mortgage broker and consultant in Vancouver with your best interests at heart. 

You and Your Broker: A Complicated Relationship

Still remember that first consultation with your mortgage broker in Vancouver? Picture it again. Like any relationship it begins with initial hesitation and insecurity. You wonder if you really need this service. Couldn’t you take care of this mortgage on your own? But your friends all gave you the same advice. Maybe you feel awkward as the broker begins to assess your financial history. There are so many questions to answer. Your income… Your outgoings… Your personal debt… Everything is scrutinized and measured. Then bit by bit the conversation comes around to the future and you begin to create a plan. Using all this information, the broker begins to outline your priorities and draw a road-map. How much do you want to borrow? How soon will you require the funds? What are the costs of the transactions?

Then with all this information in hand, your mortgage broker in Vancouver sets out to negotiate with your bank for the best possible deal. Flash forward a few years and here you are again in the same office. There are three cups of coffee on the desk amongst files and folders and letters from your lender. This time your spouse is sitting next to you. You’re both thinking about the mortgage renewal, due later on this year. The relationship with your broker is more comfortable now. You’ve come to trust the firm over the years.  You’ve begun to see it as a long-term relationship playing out over the lifetime of your mortgage. Your credit repair issues are now cleared up. Things are looking brighter. You’re even thinking about purchasing another property. But not this year.

Lending Experts in a mortgage broker in Vancouver sensitive to your needs and aspirations. Our success is in the mutual trust we enjoy with our clients. Over the years we get to know you, just as you get to know us. 

Mortgage Advise for First-Time Buyers

Pre-approved mortgage

You may want to consider getting a pre-approved mortgage. A pre-approved mortgage is when your bank or lender approves the loan in advance of making the purchase. In this way, you’ll know how much you can really afford to spend. It’s also a good way of showing the seller that you’re serious about the purchase.  Your mortgage broker in Vancouver can be of assistance in getting you the best deal possible.

First-time buyer in Vancouver

Let’s face it. Vancouver isn’t a cheap place to buy a house. A great many people feel excluded from the market. But if you are planning to wade in, do so with caution. There are many aspects to buying a home and many potentially hidden costs such as mortgage insurance, transfer taxes and appraisal fees. Buying a house is a momentous decision and shouldn’t be undertaken unless you feel comfortable with your financial position. Be advised that buying a property is an ongoing financial responsibility involving continual dept-management. 

Mortgage consultant

When seeking a mortgage many people benefit from using a broker. Your mortgage broker in Vancouver can negotiate with the lender on your behalf and make sure you obtain the optimum benefits and the lowest possible interest rate. In order to get a pre-approved loan your credit must be in good standing, your dept-to-income ratio must be sustainable and ideally you should be able to cover much of the down-payment. Your mortgage broker in Vancouver will access your overall situation and isolate the correct strategy. 

You and Your Broker: A Complicated Relationship

Still remember that first consultation with your mortgage broker in Vancouver? Picture it again. Like any relationship it begins with initial hesitation and insecurity. You wonder if you really need this service. Couldn’t you take care of this mortgage on your own? But your friends all gave you the same advice. Maybe you feel awkward as the broker begins to assess your financial history. There are so many questions to answer. Your income… Your outgoings… Your personal dept… Everything is scrutinized and measured. Then bit by bit the conversation comes around to the future and you begin to create a plan. Using all this information, the broker begins to outline your priorities and draw a road-map. How much do you want to borrow? How soon will you require the funds? What are the costs of the transactions?

Then with all this information in hand, your mortgage broker in Vancouver sets out to negotiate with your bank for the best possible deal. Flash forward a few years and here you are again in the same office. There are three cups of coffee on the desk amongst files and folders and letters from your lender. This time your spouse is sitting next to you. You’re both thinking about the mortgage renewal, due later on this year. The relationship with your broker is more comfortable now. You’ve come to trust the firm over the years.  You’ve begun to see it as a long-term relationship playing out over the lifetime of your mortgage. Your credit repair issues are now cleared up. Things are looking brighter. You’re even thinking about purchasing another property. But not this year.

Lending Experts in a mortgage Consultant in Vancouver sensitive to your needs and aspirations. Our success is in the mutual trust we enjoy with our clients. Over the years we get to know you, just as you get to know us.