Refinancing your mortgage

Refinancing a Home in Calgary: What You Need to Know:

Refinancing your home with BOSI Financial can be a great way to access the equity you've built up in your property and to take advantage of lower interest rates. However, if you're considering refinancing your home in Calgary, there are several important things you should know about mortgage rules.

Firstly, it's important to understand the difference between a traditional mortgage and a refinanced mortgage. With a traditional mortgage, you borrow money to buy a home and make regular payments to pay back the loan over time. With a refinanced mortgage, you borrow additional money using your existing home equity as collateral.

In Canada, there are two types of refinanced mortgages: a traditional refinance and a home equity line of credit (HELOC). A traditional refinance involves borrowing a lump sum of money, which is paid back over a set term with regular payments. A HELOC, on the other hand, allows you to borrow money as needed, up to a predetermined credit limit.

When refinancing your home, you'll need to meet certain eligibility requirements. These include:

1. Having a minimum credit score of 550 (620 for best rates)

2. Having a maximum loan-to-value ratio of 80%. For example, if your home is worth $500,000, the maximum take out is $400,000, including paying out any existing mortgages.

One important thing to keep in mind is that refinancing your home will typically come with closing costs, which can include appraisal fees, legal fees, and mortgage discharge fees. These costs can add up quickly, so it's important to factor them into your decision when considering whether to refinance. BOSI Financial will help you determine these costs and if refinancing is best for you.

Finally, it's important to consider the potential benefits and risks of refinancing your home. On the one hand, refinancing can allow you to access cash for home renovations, debt consolidation, or other purposes. On the other hand, it can increase your debt load and may result in higher monthly payments if you are not allocating those funds immediately.

If you're considering refinancing your home in Calgary, it's important to work with BOSI Financial who can help you navigate the process and make an informed decision. By understanding Canada's mortgage rules and your options for refinancing, you can make the best choice for your financial situation and goals.

If you are interested in accessing your equity, give us a call today!