Refinance

There are dozens of reasons why Canadians choose to refinance their mortgage. Refinancing involves replacing an existing mortgage with a new, increased amount to take advantage of the equity in your home.

Common reasons why homeowners choose to draw on the equity in their home and refinance are:

• * Improve their current mortgage interest rate and terms
• * Buy a new car
• * Renovate their home
• * Consolidate or pay-off debt
• * Investment purpose
• * Education expenses (university/college)
• * Other Personal Reasons

Borrowers can choose from a variety of mortgage products including a secured line of credit, 2nd mortgages or debt consolidation programs. Whatever your reason may be, Kupina Mortgage agents are here to help you tap into your built-up wealth to achieve what is best for your personal and financial goals.

HOME EQUITY LINE OF CREDIT

One of the best and most affordable ways to access capital is through accumulated equity in your property. Essentially, the equity you build in your home creates a supply of credit available to you through a Home Equity Line of Credit (HELOC). A HELOC is very flexible compared to a regular loan since:

• * Borrowers control how much they need (up to 85% of their home value)
• * You make interest-only payments on the amount being borrowed
• * There is no requirement or penalty to pay down the balance before the loan expires
• * HELOC’s have low interest rates compared to credit cards and other loans
• * You decide how much you want to spend on your payments (minimum interest-only payment required)
• * With a HELOC, real estate developers can keep costs low during construction when cash is required and use the proceeds of the sale of the property to pay off the balance

Let your home equity start working for you! Today more than ever, instead of sitting on equity in your home, people are willing to access this capital. Homeowners are utilizing their equity to further investments, pay-off debt, send children to university and even boost their RRSP contribution. Contact us today to better understand your options and discuss the opportunities your home equity can bring for your future plans.

SECOND MORTGAGE

Second mortgages can be beneficial for Canadians who need to access additional funds. A second mortgage refers to a loan that is registered on a property with an existing first mortgage. Commonly, this type of mortgage serves a variety of purposes such as renovating a home, purchasing additional properties, creating a Home Equity Line of Credit, paying off consumer debt, purchasing vehicles, etc.

Typically second mortgage products include higher interest rates than first mortgages due to the higher risk of the loan. However, it is still a widely used option for homeowners. Contact one of the Kupina Mortgage agents for advice on securing a second mortgage product.

DEBT CONSOLIDATION

A refinancing strategy for your mortgage can be to pay off bills and debt. When refinancing you are able to consolidate your debt by accessing home equity that has accumulated and apply this capital towards existing consumer debt or a higher interest loan.

A debt consolidation strategy can help transform your financial situation. It is beneficial because you are able to reduce monthly payments through a lower interest loan and can simplify your finances by making one single payment.

Many credit card companies and financial institutions will not take the same initiative to do what is necessary to re-organize your finances. Let us assist you in exploring your options by reviewing your finances and making a recommendation.