How Toronto Homeowners Can Save
Money by Refinancing
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.