August 16, 2018

Refinancing and Home Equity

There are many reasons that you may want to refinance your home to enable you to take advantage of the equity that you have built up and to take advantage of lower interest rates.  This process is referred to as “equity take-out.”  Common reasons could be:

  • Debt consolidation
  • New business start up
  • Investment into your business
  • Investments into other vehicles or retirement planning
  • Home renovations
  • Second properties
  • Unexpected expenses
  • Home equity lines of credit available


  • Refinance to a maximum of 80% LTV, renovation loans with multiple advances are acceptable (maximum 4 advances)
  • Maximum 4 units and 1 unit must be owner occupied
  • Secondary Homes up to a maximum of 2 units
  • Maximum equity removal:  $200,000

I can work out all the calculations and let you know what interest rate you can expect to receive, the monthly payment and how much money you should save on a monthly basis.


Mortgage Renewals/Switch

Typically when you receive your renewal documents from your lending institution, they will not quote you the best rate available.  They hope that you will just sign and return the renewal forms and be done with it.  Now, is that any way to treat a client?  I can switch your mortgage to another lending institution at the best-discounted rates at no cost to you.  As your mortgage is now considered “fully open”, there won’t be any penalties and the new lender will pick up the cost of your appraisal and transfer fees.

Make sure you take care of your finances and get the great rate that you deserve.  It would be helpful to start the process 6 months before your mortgage matures.


Private Mortgage

When dealing with a private mortgage in Oakville & Toronto, the capital isn’t borrowed from a financial institution or a bank. The money is borrowed from an individual or a commercial enterprise. That is why before choosing a private mortgage you have to take into consideration the following points.

• A private mortgage should always have proper documentation. Put together the loan agreement in a way that it will always protect the interests of both parties, which includes the lender and borrower.
• For paperwork take the help of a lawyer, your tax accountant or another person in Oakville or Toronto with experience who can help you with the process. There are websites that also provide information on how to make contracts for private mortgages. It is a good practice to research these sites and use them as a guide to assist you in preparing your mortgage agreement.
• Include every aspect of the deal in the mortgage agreement like when you have to make payments, What happens if and when payments are not received on the specified date, where and how are payments to be made, is it possible for the borrower to repay, will the loan be insured and other details that are important to the loan and the payment.

Private Mortgage Toronto

Private Mortgage Toronto

• It is a good practice to secure the loan using assets that are worth the loan amount. This a good practice to be followed even if when are taking a loan from a friend or a family member. By doing this, if you happen to run into other difficulties with finances, the property or asset will have a lien on it and creditors cannot go after it. Another thing, by making the loan secure, it is sometimes possible for the borrower to save taxes. Also, you will not be obligated in case you are borrowing money from a family member or friend.