Equity Refinancing
With the recent increase in housing prices across Canada, chances are people who have purchased a home in the past may have a significant amount of equity in their home. This equity can be accessed in the form of a mortgage.
Refinancing your home can be done for many purposes including debt consolidation, combining a first and second mortgage, or renovations. Currently, refinances are available up to 90% loan to value of your home (1 to 4 unit properties). The value of your home is based on the current market price and is determined either through a full appraisal or a property assessment tool used by the insurer.
Refinances can currently be amortized up to 35 years. In the case where the loan to value on your refinance is less than 80%, no mortgage insurance premiums will apply. The loan to value is the relationship between the principal balance of the mortgage and property value. For loan to values exceeding 80%, the mortgage insurance premium charged will depend on the amount of the refinance as well as the amortization you choose for the mortgage.
For most cases, the applicant will need to have average to good credit in order to be approved for the refinance and a better than average credit score to qualify for a refinance up to 90%.
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