All across Canada, we are all enjoying the beautiful spring weather. Long walks, hours spent in the garden, endless sunshine, what more could you ask for?
Everything around us is in full bloom, including your mortgage!
Real estate in the warmer months tends to become higher in demand, prompting the need for a mortgage. Whether you are a first-time home buyer or are looking to refinance your mortgage to accommodate purchasing a second property, spring is a great time to enter the real estate world!
Before you embark on refinancing your mortgage, there are various factors to consider that go beyond the glorious weather and peak real estate season. Here are a few factors that can help ensure that you are well-prepared for the journey ahead.
1. The current interest rates
Mortgage refinancing decisions are heavily influenced by interest rates. When interest rates are lower than what you already have on your mortgage, it is often a good idea to consider refinancing.
However, as Canada has seen within the past year, interest rate changes are unpredictable, and they can occur at any time of year (thank you Bank of Canada!).
To determine whether current interest rates are favourable for refinancing, it is critical to watch interest rate trends and be in touch with your mortgage broker. They will help to narrow down if now is the right time to refinance, based on the current market, the interest rates, and of course, you!
2. Spring is high for seasonal real estate demand (and so are the prices!)
Everyone is brushing off their winter chill and ready to jump into spring home showings, making the real estate market peak.
While this is great for real estate agents and homeowners, if you are looking to purchase your second property, you may encounter some pretty spooky prices. However, don’t let this deter you from refinancing! It may end up working out in your favour.
Higher property values can work in your favour if you're thinking about refinancing to access your home equity. If the prices have increased, so has the equity on your current home.
While the market may be more competitive than in the winter months, with a great real estate agent by your side and an expert mortgage brokerage in your back pocket, refinancing during the spring season has never been easier.
3. Consider the fees
The costs of refinancing your mortgage go beyond a fee or two… We are talking about a few. Fees include appraisal fees, legal fees, and possibly prepayment penalties.
Consider how long it will take to recoup these fees through lower monthly payments or other refinancing benefits. This will help to narrow down whether or not refinancing your mortgage is right for you at this time.
4. Consult your mortgage broker beforehand!
Based on your current mortgage and your interest rate, we will take a thorough look at whether or not refinancing is the right choice for you at this moment.
We will examine your unique situation, compare mortgage rates and terms, and provide customized advice geared to your specific requirements to ensure you are going into your refinancing as confidently as possible.
Go ahead, give us a call!
Lean on Arise Mortgage this spring season
At Arise Mortgage, refinancing is one of our specialties. While the spring weather certainly makes us feel great too, we will make sure that you are making the most conscious decision when it comes to your refinancing.
Book a consultation with our team today! We’d love to chat with you.