Refinance Mortgage: A Smart Choice of Canada
Smart Canadians refinance mortgage at lower interest rate and save a lot of money.
Majority of Canadians are seeking refinance for their loans and mortgages in lieu of the opinion that interest rates in the country are unlikely to go any higher in the short term. According to government figures, Canadian citizens have actually managed to save $2.7-billion in the past year alone by renewing or refinancing their mortgages and the trend is likely to continue for the current financial year. Even as a number of Canadians citizens believe that they would be able to successfully handle a rate increase that boosted their mortgage payments by $200 per month thanks mainly to the booming Canadian economy, the trend of refinancing loans has really emerged big time.
Better Safe Than Sorry: In this era of global uncertainty and financial meltdowns, even as the Canadian economy is moving on a strong path, majority of the people feel that it is wise to refinance their mortgages today rather than wait for a rainy day. After all its better to be safe than sorry seems to be the sentiment going around as even the recent change in government policy on loan refinance that restricted consumers to 85percent debt on the value of their home, down from 90percent has not had any negative effect.
Advantages of Refinance: Even as most Canadians seek to refinance their mortgage due to lower interest rates, there are many other reasons for considering a loan refinance. For people who have worked hard in the past at improving their credit score and now qualify for a new mortgage with a better discount, its a golden opportunity to not only covert a variable rate mortgage to a fixed rate but also the fact the rates are unlikely to go up any time soon. Financially speaking, refinancing is also a very good option to pull out equity for consolidating debt, home improvements and balance other important investments such as college expenses and other day-to-day expenses.
CAAMP Statistics Support The Sentiment: According to a recent survey conducted by the Canadian Association of Accredited Mortgage Professionals, nearly 37percent of Canadian citizens opted for a variable rate mortgage in the last year alone. Most consumers believe that considering the global economic uncertainty and the financial meltdowns in Europe and other parts of the world, it is better to get their loans refinanced when the interest rates are low. It’s important to note that mortgage rates in Canada are very close to their all-time low levels with a flatter yield curve that ultimately result in reducing the steep discount on variable rates. According to media reports, variable rate product in the current Canadian market is closer to about 2.48percent while a five-year fixed rate closed mortgage is as low as 3.19percent.