Refinancing options such as second mortgages and home equity lines of credit are great ways for Toronto homeowners to consolidate debts, while lowering their mortgage rates. Refinancing allows Toronto homeowners to use their home equity to invest back into their home and change the terms of their original mortgage, such as mortgage rates or length of the mortgage term. Although mortgage rates in Toronto sometimes change just by a tenth of decimal, they provide long-term savings for homeowners and lower their amount spent on interest payments.

 

Options for Mortgage Rates in Toronto 

Like other home equity services, Toronto homeowners are limited to a refinancing credit limit of 85% of the value of the home minus what is left owed on the mortgage. For example, if Paul bought a home in Toronto in the year 2000 for $100,000 with an $80,000 mortgage loan, that same home is appraised for $200,000 ten years later in 2010, and he still owes $50,000 on the mortgage. Paul can borrow $120,000 against his home equity to invest back into the home to lower his mortgage rate in Toronto.