Mortgage REFINANCE Finally Made Simple

Refinancing your property is an excellent way to access low cost capital to consolidate debt, pay for renovations, use for investment or a whole host of other purposes. The aim of this guide is to provide the key information about mortgage refinancing and help you gain the most long term value on your transaction. Connect with us any time for questions and custom mortgage planning strategies.

Here You Will Learn

  • How does a refinance work?

  • The best questions to ask about your Refinance.

  • Costly dangers to look out for in the fine print.


Refinancing in 3 Steps

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Mortgage Information Refresher

Whereas a bank can offer you their line of mortgage rates and products, a mortgage broker works for you and offers you the entire mortgage market of lenders, rates and products. We believe this aligns better with your best interest. And we continue to look for ways to save you money over the life of your mortgage – at renewal time or before. Banks just don’t do this.
Altrua has access to over 200 lenders across Canada – but tends to work with about 15 core lenders including the big banks. If it makes sense, we can even go to your own bank and help you negotiate a lower rate.
Because all mortgage lenders in Canada follow the same government rules for protecting themselves and clients – there is little to no risk from one lender to the next. All ‘A’ low rate mortgage lenders are in very stable conditions. The only risk you could face is by working with just one Bank, and paying more for your mortgage.
For the vast majority of our mortgages we are paid a ‘placement fee’ or commission from the lender, and do not charge our clients any fees. Unlike most mortgage brokers – we use much of this lender fee to help lower your rate even further – while ensuring superior advise and service standards.

Warning! – What To Look For In The Fine Print

High Penalties

Do you know what your penalty costs are? There are major variations in mortgage penalty calculations, with major Banks among the highest for calculating penalties. As most Canadians experience life and property changes during a mortgage term, a very high penalty calculation can easily prove financially damaging. If ‘porting’ a mortgage to a new property lowest rates are not offered on additional mortgage money, if your only alternative is a massive penalty.

Collateral Charge

Can you easily re-shop your mortgage on term renewal? The ‘collateral charge’ contract makes it very difficult to move lenders at renewal to a better rate or product, without paying for a lawyer and refinancing the mortgage. This feature is widespread in the market, and is often not well explained upfront. We think you should always get the lowest rate – both today and at your renewal date. Check out this CBC Market Watch article here for details.

Pre Payment Flexibility

How flexible and open is your mortgage? When planned properly, a flexible pre-payment privilege can go far in saving on interest and becoming Mortgage Free Sooner. Some pre-payment privileges are smaller and limited to one or two occasions per year, and on specified dates. This limitation can be costly if relied on over the long term.

Variable Rate Features

If locking your variable mortgage into a fixed rate, are you locking in to high bank posted rates, or discounted wholesale rates? This difference in lock in rate can be big, perhaps as much as 1%, and can potentially manipulate wise decisions to lock in variable mortgages to a fixed product at some future point. If you decide on a variable mortgage, get the details on the fixed rate lock in privilege.

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