If household debt has been weighing you down, let me promise you- you are not alone.
With interest rates trending downward and home values holding strong, and household debt (credit cards, loans, home maintenance requirements) feeling overwhelming, refinancing is emerging as a smart financial move for homeowners seeking greater control over their finances.
The Perfect Storm for Refinancing
Several key factors make now an ideal time to consider refinancing:
- Interest Rates Are Moving Down – After a period of high rates, recent market shifts have opened new opportunities to secure lower monthly payments.
Is your rate over 4.99%?
We need to review what options are available to you today – to lower that rate.
- Stronger Equity Positions – In many cases, home values have remained strong or increased, giving many homeowners more equity than they may have realized.
- Managing Debt Feels Overwhelming – High-interest credit card balances, personal loans, and other financial obligations are pushing many homeowners to seek relief through refinancing.
Real Savings for Real Homeowners
In recent months, we’ve worked closely with many clients to develop refinancing strategies tailored to their unique financial situations.
In some cases, homeowners are saving thousands per month by restructuring their loans, consolidating debt, or securing a lower rate.
In other cases, it’s all about strategy. Paying off higher interest debt, all while moving ahead with a strong and consistent plan to pay the mortgage offer faster and save hundreds of thousands in long term interest costs.
Every situation is unique.
I thought it was interesting when I was recently looking at my very own credit card statement recently.
The blurb on the bottom of the statement indicated that if I chose to make minimum payments on my $4429.00 balance, it would take me 38 years and 5 months to pay it off.
I can promise you there are much better strategies available if you have home equity.
Common refinancing strategies include:
- Rate-and-Term Refinancing – Lowering your interest rate and adjusting your amortization to reduce monthly payments.
- Cash-Out Refinancing – Accessing home equity to pay off high-interest debt, invest in home improvements, or boost financial flexibility.
- Debt Consolidation – Combining multiple debts into one manageable mortgage payment, often at a lower rate than credit cards or personal loans.
Is Refinancing Right for You?
Every homeowner’s situation is different, but if you’re carrying high-interest debt or looking to lower your mortgage payment, now is the time to explore your options.
A well-planned refinance could put more money back in your pocket each month and set you up for long-term financial success.
Let’s look some examples:
EXAMPLE (1)
- Value of the Home is $345,000.00
- Maximum mortgage allowable (80% = $276,000.00)
- NEW mortgage request $276,000.00
- Less current Mortgage $184,846.23
- Less Penalty $5823.52
- Less Canadian Tire CC $3948
- Less Cap one CC $3630
- Less small Auto loan $27,716
- Less Loan $15,857
- Less Legal fees to close $2000.00
- $22,179.25 left over (for home improvements)
NEW mortgage payment = $1382.02/month
Currently paying monthly:
- $1497.49 – Mortgage
- $392.17 – Loan
- $643.50 – small Auto loan
- $118.44 – Canadian Tire Credit Card
- $108.90 – Cap 1 Credit card
- $2760.50 (savings of $1378.48/month)
EXAMPLE (2)
- Value of the Home is $1,345,000.00
- Maximum mortgage allowable (80% = $1,076.000.00)
- New mortgage request $760,000.00
- Less current Mortgage $491,646.38
- Less Penalty $5763.96
- Less Simpli Line of Credit $14,000.00
- Less Scotia Line $25,000.00
- Less TD Credit card $15,000.00
- Less Loan to family $35,000.00
- Less Legal fees to close $2500.00
- =$171,089.66 for home renovation
NEW mortgage payment = $3805.55/month
Currently paying monthly:
- $2674.88 – Mortgage $491,646.38
- $444 – Simpli Line of Credit $14,000.00
- $682 – Scotia Line $25,000.00
- $564 – TD Credit card $15,000.00
- $1000 – Less Loan to family $35,000.00
- $5364.88 (savings $1559.33/month)
If you’re curious about how refinancing could benefit you, let’s connect.
We’ll create a personalized strategy to maximize your savings and strengthen your financial future.
