馃攳
Mortgage refinancing explained: What to know and when to do it - YouTube
Channel: Homebuyer's School
[0]
Welcome to Homebuyer's School brought
[2]
to you by Brookfield Residential.
[5]
So before we begin, if this is your first
[8]
time on this channel and you want to get
[9]
the latest strategies tactics and tips on
[12]
home buying, click the subscribe button
[14]
below hit the little bell so you
[16]
don't miss anything.
[18]
Hi everyone, welcome to another edition
of Homebuyer's School, today I'm joined
[21]
by Mutjaba Syed, manager mobile
[23]
mortgage specialist with
TD Canada Trust, and
[26]
today the question we're going
to answer is,
[30]
"What are the different types
of mortgage refinancing?"
[32]
That's a good question Karl, so we
[33]
actually have different types of
refinancing available for different
[36]
situations that you might have if your
term has come up with your current bank
[41]
right now, and you're looking at moving
into a different institution for a
[45]
better rate that is also considered a
refinance, that's also considered a
[49]
transferring as well,
but if you also feel like you've
[52]
actually paid down your mortgage, there's
some equity available, you want to be
[56]
able to use that equity for whatever
needs you might have. It could be a debt
[59]
consolidation paying off some loans,
purchasing an investment, we can also
[64]
take money out which is also considered
and equity takeout which is also a
[68]
mortgage refinance as well.
[70]
So when would you actually
refinance-- from a transfer
[74]
point of view-- what are some situations
that would occur?
[79]
Yeah so technically if your term is coming
up and you feel like there's better rates
[83]
available or better terms available with
your institution that'd be a great
[87]
time to actually talk about that
transfer from your current bank to a
[91]
different bank just to see how much of a
benefit it is for you to actually move
[95]
institutions all together. Usually banks
will give you 4 months prior to your
[100]
renewal date to actually give you that
time to kind of show up and decide
[104]
if you would actually like to stay with
your current institution or actually go to
[107]
a different institution for maybe
better rates.
[111]
Is there a penalty if you want to
[114]
transfer before that 4 month period?
[116]
Absolutely so before the
4 month period you can
[119]
actually renew with your own bank within
the 4 months without any penalties but
[123]
if you did decide to actually leave
prior to your term actually coming up
[128]
for renewal then definitely there's
going to be a penalties and the
[132]
penalties could determine--could just be
based on a lot of different things so I
[136]
would definitely have a conversation with
your bank to see if there are any
[139]
penalties and if they are, what type and
how much are they.
[142]
So Mo, when should you
refinance a mortgage?
[147]
Yeah, so if you ever
feel like you want to be--your term is
[149]
coming up would be a great time to
actually look at switching banks if
[153]
you're getting a better, more competitive
rate or another good time is to see if
[158]
you have some equity available if you
actually pay down your mortgage, done a
[161]
great job in paying it down and you feel
like you want to be able to use those
[165]
funds towards debt pay down, you want
to pay off some loans or credit cards, you
[171]
want to be able to take some money and
invest it into other things or even
[174]
purchase, it would be a great time to
refinance your home.
[178]
When says I want to take out a second
mortgage, is that the same
[183]
thing as refinancing a mortgage and
when would you do that?
[186]
Yeah absolutely, so taking out a
[188]
second mortgage just means
to the bank is that you're actually
[192]
taking out--putting a lien after your
first mortgage, so let's say if your
[196]
first mortgage is in place right now and
you still have some time remaining on
[200]
your term and you still need some money
available and you don't want to break
[204]
your term and face a penalty, banks do
offer--you have the option of taking
[208]
a second mortgage out on your home if
there's equity available and that's a
[212]
very good option to actually exercise if
you feel like there is need for you to
[217]
actually access some funds.
[218]
Right. So Mo, so you anything
else to add?
[220]
Yeah, what I would
[222]
say I would definitely recommend
reaching out to your bank to your lender
[225]
to your specialist to see if taking some
extra funds I would actually impact your
[229]
current mortgage right now, it's a great
conversation to have with them and to
[233]
see, but if you definitely need some
extra funds, book an appointment with
[236]
your specialist and see what
all your options are.
[239]
Great, well perfect.
[241]
Thank you very much Mo. Everyone just
remember we have a lot of videos on
[244]
mortgage pre-approval and especially the
new--our new video on the new mortgage
[248]
rules in Canada. Thank you
very much for joining us and
[251]
we'll catch you next time.
[253]
That's another edition of
[255]
Homebuyer's School, tune in
[256]
next time for more expert tips and
[258]
tricks and visit homebuyersschool.ca
[261]
to bring you one step closer to
[263]
finding your dream home. As with
[266]
everything it would be great if you like
[268]
and share our videos, also please let us
[271]
know if you have any home buying
[272]
questions you want us to answer.
Most Recent Videos:
You can go back to the homepage right here: Homepage