In 2006, CMHC reported that 71% of all mortgage consumers refinanced before their mortgage term was up.
Of those who refinanced, 29% did so to consolidate debt. It’s easy to see why. While credit card interest rates currently range from 10-20%, consolidating that debt into your mortgage through refinancing can cut your interest costs in half!
To explore the benefits of debt consolidation and refinancing, talk to your mortgage broker today. Your mortgage broker will do a free analysis of your mortgage to see how much equity is available in your home. From there, a skilled mortgage agent will be able to examine the fine print on your mortgage contract to determine if any early pay-out fees apply. Obviously, the most attractive time to refinance is when your mortgage is coming due or you’re selling one house and buying another. But depending on your situation, the money that you save on interest can more than pay for any fees involved.
MonsterMortgage.ca will do the calculations and present a plan that shows what your bottom line benefit is. In many cases, debt consolidation not only reduces interest costs, it can also help put you back on the road to achieving your financial goals. Many clients’ newly consolidated monthly payments are so much lower, that they’re able to start an investment plan for retirement or plan their children’s education.