Narendra Singh, Branch Manager at Envision Financial’s Fleetwood Branch.

Narendra Singh, Branch Manager at Envision Financial’s Fleetwood Branch.

The dollars and cents of mortgage refinancing

Talk to an advisor to find out how you can take advantage of low interest rates

You’ve probably heard that interest rates are low.

Advisors said it was a great time to borrow two years ago, when mortgage rates were between three and four percent. Now mortgage rates are even lower (under two percent), so the climate’s even better.

“A mortgage is usually the biggest debt that our members take on in their entire lives,” says Narendra Singh, Branch Manager at Envision Financial’s Fleetwood Branch. “We always advise finding the best interest rate for your biggest debt.”

It’s time to schedule a chat with your financial advisor.

Reasons to refinance

Refinancing a mortgage can help you achieve many financial goals, but it’s important to clarify your specific wants and needs. Do you simply want to take advantage of lower interest rates, or are you hoping to get some extra cash to pay for a renovation? Do you want to lower your monthly payment, or pay out your mortgage faster?

“You may be in a situation where you’ve paid down your mortgage, but with low interest rates you can free up some equity and use that cash to invest,” Singh says. “We can advise you on the best options based on your financial goals and your specific financial situation.”

What about penalties?

Most mortgages have pre-payment penalties, so is refinancing still a good idea?

“It depends what kind of mortgage you have, and your advisor can look into that. If your penalty is low, it can make sense to pay the penalty and save money with the lower interest rate,” Singh says. “If your penalty is high we can ‘blend and extend.’ We’ll be able to lower your interest rate without paying a penalty — your interest rate won’t be as low as a brand new mortgage, but you can still save money.”

Make a plan that works with your spending style

How comfortable are you with risk? Do you stick to a consistent budget? Your money style affects the kinds of investments and loans your advisor will suggest.

“You may want to refinance your mortgage from a fixed to a variable rate, but only if it matches your risk profile. Fixed rates give you peace of mind, and you’ll have predictable monthly payments. If you’re comfortable with risk, historically, variable rates have saved money in the long run,” Singh says.

Refinancing isn’t for everyone. It does mean you’ll be taking on more debt, so if you don’t control your spending and cash flow it can be risky to refinance. There are expenses associated with refinancing too — legal costs, appraisal fees, mortgage penalties, etc. — but with interest rates this low you’re likely to save money in the end.

To find out if mortgage refinancing is right for you, book an appointment with your Envision Financial advisor today.

Envision Financial is a division of First West Credit Union.

Financial planningMortgage Brokers

Just Posted

Police and fire crews were in the 18500-block of 18 Avenue around 9 p.m. Thursday (May 13, 2021). (Curtis Kreklau photo)
PHOTOS: Police investigating South Surrey vehicle fire

Unclear if blaze in the 18500-block of 18 Avenue related to Burnaby shootings: RCMP

Surrey teacher Derek Duke gets vaccinated for COVID-19 at the North Surrey clinic on Wednesday, March 24. (submitted photo: Fraser Health)
COVID-19 cases among staff drop 60% after vaccinations: Surrey school district

School-based staff first eligible for vaccine March 24

Darlene Bennett, right, speaking about her murdered husband Paul at a press conference in 2018. (File photo: Tom Zytaruk)
Widow of Surrey murder victim seeking referendum vote on policing transition

Darlene Bennett files application with Elections BC seeking binding referendum vote

On Thursday at South Surrey Athletic Park, the White Rock Muslim Association hosted an outdoor prayer service to celebrate Eid – the end of Ramadan. (Contributed photo)
PHOTOS: White Rock Muslim Association celebrates end of Ramadan outdoors

Semiahmoo Peninsula Muslims took part in socially-distanced prayers to mark Eid

Shane Ertmoed’s application for Escorted Temporary Absences was granted following a hearing May 4, 2021. (File photo)
Surrey child-killer an ‘average’ risk to sexually reoffend: Parole Board

Written reasons behind approval of Shane Ertmoed’s request for escorted absences shared

Prince Rupert was one of the first B.C. communities targeted for mass vaccination after a steep rise in infections. Grey area marks community-wide vaccine distribution. (B.C. Centre for Disease Control)
B.C. tracks big drop in COVID-19 infections after vaccination

Prince Rupert, Indigenous communities show improvement

A COVID-19 patient receives oxygen outside a hospital in Jammu, India, Wednesday, May 12, 2021. (AP/Channi Anand)
B.C. donates $500K to Red Cross COVID-19 relief efforts in India

The money will provide oxygen cylinders and ambulances for patients in communities grappling with the virus

Police are asking the public for help identifying a suspect who allegedly hurled anti-Asian slurs at a family in a Richmond drive-through on May 1. (Benjamin Wong/Screen grab)
Suspect at large in racist tirade at Richmond drive-thru, says RCMP

The Caucasian man was recorded May 1 yelling anti-Asian slurs at a Richmond family in the lineup

B.C. Public Safety Minister Mike Farnworth debates the province’s latest measure to control crime, March 10, 2021. The legislation allows police to impound vehicles used to transport weapons and further restricts sale of vehicle and body armour. (B.C. legislature video)
B.C. seeking ways to ‘name and shame’ gangsters, minister says

Mike Farnworth appeals to family members to talk to police

Jonathan Prest had to climb way up to the top of a dead red cedar tree to rescue a terrified cat, but he made it up and down successfully. (Facebook photos)
Tree cutter rescues cat stuck 100 feet up a dead and dried-out cedar

Jonathan Prest put himself in extreme peril to get a terrified cat out of a dangerous situation

The Greater Victoria School District continues to face backlash over its wording and approach to Indigenous learners in its 2021-2022 budget talks. (Black Press Media file photo)
School district’s approach to Indigenous learners leaves Victoria teachers ‘disgusted’

Backlash grows over ‘pattern of colonial thinking permeating the leadership’

Italian-Canadian prisoners at the Kananaskis prisoner of war camp in Alberta. (University of Calgary/Contributed)
Italian moved to Okanagan with hope; he ended up being sent to a WWII internment camp

Raymond Lenzi shares his grandfather’s story ahead of Canada’s planned formal apology to Italian-Canadians

Then-minister Rich Coleman, escorted by Victoria Police, makes his way to the east wing amid a protest blocking the legislature entrances before the throne speech in Victoria, B.C., Tuesday, Feb. 11, 2020. THE CANADIAN PRESS/Chad Hipolito
B.C. money laundering inquiry testimony ends today with reappearance of Rich Coleman

Responsible for the gaming file off and on from 2001 to 2013, Coleman been recalled after his initial testimony to the Cullen Commission last month

Colin Dowler rests in hospital recuperating from wounds suffered from a grizzly bear attack north of Campbell River. He was able to end the struggle by stabbing the bear in the neck with a knife like the one he is holding. Photo submitted
‘Bad-ass dude that took on a grizzly bear’ doesn’t let 2019 B.C. attack bring him down

Campbell River’s Colin Dowler gets on with his life as his rehabilitation continues

Most Read