Guide to Refinancing Your Mortgage

Three main reasons to refinance your mortgage:

To withdraw equity from property for other use

To decrease monthly payments

Obtain a lower interest rate

In a fixed mortgage you will likely face a penalty to pay out an existing loan. Make sure to contact your bank for any information on pay out penalties. If done properly, I can refinance your home and use my Inflation Hedge Mortgage Strategy to save you thousands of dollars on your mortgage.


Refinance Your Mortgage in Kingston

Refinancing a mortgage in Kingston means paying off your existing loan and replacing it with a new one. There are many reasons to consider refinancing your mortgage and they each come with their own unique benefits and risks.

In many cases, people will choose to refinance their home to improve the current mortgage they have. This includes obtaining a lower interest rate, as a way to shorten the term of the mortgage, to switch from an variable-rate mortgage to a fixed-rate mortgage or vice versa.

Other people choose to mortgage refinance as a way to tap into their home’s equity. This cash can be used to help finance a larger purchase like a second home, cottage or new vehicle. Others use it to pay off debts, renovate their home, or help a family member in need.


Securing a lower interest rate is not without its risks. If you choose to refinance your mortgage, it can cost you 3-6% of the loan’s principle. It also requires appraisal, title search and application fees. If you’re starting to think about refinancing your mortgage in Kingston, I would be happy to assist you with the process. I’ve have helped many families throughout the area and in many cases, been able to help them secure refinance rates lower than the original mortgage interest rates.


Mortgage Refinance Tips

Understand the difference between variable-rate and adjustable-rate mortgages

Variable rate mortgage payments do not switch when the prime rate changes. With an adjustable rate mortgage, your payments will change when the prime rate changes.

Ask about increasing your payment to reduce amortization faster.

Some lenders will let you increase your payment up to 100 percent. This essentially doubles your payment but allows you to pay off the mortgage in less time.

Inquire about locking in your mortgage rate

If your mortgage rate floats with the prime rate, many lenders will let you lock into a fixed rate. However, this often comes at the cost of making you convert into a three-year term or longer if you choose to do so.

Each year, about 1 in 6 people will refinance their mortgage. This can be a risky move and sometimes people will pick the wrong financing. If you plan to refinance your mortgage in Kingston this year, I strongly suggest speaking with a trusted mortgage professional who can explain each of your options.

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As an experienced residential mortgage specialist in Kingston, I would recommend you to refinance your mortgage in three circumstances. 

  • Mortgage interest rates are falling
  • Your property’s value has significantly appreciated 
  • It hasn’t been more than 10 years of your 30-year mortgage

There could be many reasons to refinance your mortgage, all of which involve assessing funds for expenses or to save money after the interest rates have reduced. As a qualified mortgage broker, I am here to help you get your mortgage refinanced. Here are some ways you can use the funds:

  • To pay off debts or loans 
  • For down payment for a second property or vacation home 
  • Reduce your monthly payments either by increasing the amortisation term or lowering the mortgage interest rates 
  • Assist your loved ones in need

Most mortgage lenders in Kingston will let you access up to $200,000. A bigger lender can let you borrow a larger amount. It also depends on the amount of mortgage you’ve paid back. 

For a regular case, where the property owner has a good credit score, refinancing is a simple process and can be done through a mortgage specialist like Leo Ragusa. If it’s your first-time refinancing or have a complicated case, where you haven’t paid several mortgage payments, working with a lawyer will help you understand the fine print.

You will be required to provide your current month’s pay stub, T4 slips for the last two financial years, and bank and investment statements for the last three months. For self-employed individuals, you’ll need to provide some additional documents.