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

RCMP are looking for “an unknown man who wrapped his arms around” a female youth in Clayton Feb. 26. (Black Press file photo)
Youth assaulted by unknown man in Cloverdale

Mounties looking for ‘tall and thin’ Caucasian man in his 40’s with short dark brown hair

Framed photos of Travis Selje and other items fill the top of a dresser in his bedroom. (Photo: Tom Zillich)
Crown says defence case epilepsy caused fatal Surrey crash fails on balance of probabilities

‘She very clearly had some form of control over that vehicle,’ Crown argues

St. John Ambulance is looking for financial support in its bid to install 1,000 publicly accessible AED devices throughout British Columbia. The stands which hold the defibrillator also contain naloxone and first aid kits. Cost to equip and install each stand is around $8,000. (stock photo)
St. John Ambulance aims to install 1,000 publicly accessible AEDs across B.C.

First of two defibrillators planned for Crescent Beach already in place

Alex Browne photo The felling of two mature Douglas Fir ‘eagle trees’ on Oxford Street, just south of Prospect Avenue, in June of 2019, prompted a review of tree management bylaws and policies now before White Rock council. The trees were felled on instructions from City of White Rock staff, who said the work was necessary because they had become hazardous. (File photo)
City of White Rock mulls ‘tree protection’ bylaw

More stringent measures needed to protect canopy – councillor

Surrey TEDx talks move online with ‘fast-paced’ event that’s free to watch March 27

Last year’s TEDxBearCreekPark attracted 900 spectators to Bell theatre

Abbotsford’s Kris Collins turned to TikTok out of boredom when the provincial COVID-19 lockdown began in March 2020. She now has over 23 million followers on the video app. Photo: Submitted
Internet famous: Abbotsford’s Kris Collins is a TikTok comedy queen

Collins has found surprise stardom alone with a phone

BC Ferries experienced heavy traffic on Feb. 27 following cancellations the day before due to strong winds and adverse weather. (Black Press Media file photo)
BC Ferries sailings fill up quickly after Friday cancellations due to high winds

Waits expected on Swartz Bay-Tsawwassen route, Horseshoe Bay-Departure Bay route

Pig races at the 145th annual Chilliwack Fair on Aug. 12, 2017. Monday, March 1, 2021 is Pig Day. (Jenna Hauck/ Chilliwack Progress file)
Unofficial holidays: Here’s what people are celebrating for the week of Feb. 28 to March 6

Pig Day, Canadian Bacon Day and Grammar Day are all coming up this week

Staff from the Marine Mammal Rescue Centre, passersby, RCMP and Nanaimo Fire Rescue carried a sick 300-kilogram steller sea lion up the steep bluff at Invermere Beach in north Nanaimo in an attempt to save the animal’s life Thursday. (Photo courtesy Marine Mammal Rescue Centre)
300-kilogram sea lion muscled up from B.C. beach in rescue attempt

Animal dies despite efforts of Nanaimo marine mammal rescue team, emergency personnel and bystanders

Doctors and counsellors warn of an increase in panic attacks, anxiety, depression and suicide ideas between ages 10 to 14, in Campbell River. ( Black Press file photo)
Extended pandemic feeding the anxieties of B.C.’s youth

Parents not sure what to do, urged to reach out for help

Kara Sorensen, diagnosed with lung cancer in July, says it’s important for people to view her as healthy and vibrant, rather than sick. (Photo courtesy of Karen Sorensen)
B.C. woman must seek treatment overseas for inoperable lung cancer

Fundraising page launched on Karen Sorensen’s behalf, with a goal of $250,000

Gina Adams as she works on her latest piece titled ‘Undying Love’. (Submitted photo)
‘Toothless’ the kitty inspires B.C. wood carver to break out the chainsaw

Inspired by plight of a toothless cat, Gina Adams offers proceeds from her artwork to help animals

B.C. Finance Minister Selina Robinson presents bill to delay B.C.’s budget as late as April 30, and allow further spending before that, B.C. legislature, Dec. 8, 2020. (Hansard TV)
How big is B.C.’s COVID-19 deficit? We’ll find out April 20

More borrowing expected as pandemic enters second year

Passengers aboard Komagata Maru in Vancouver’s Burrard Inlet, 1914 - Library and Archives Canada image
Abbotsford council is asked to rename street in memory of Komagata Maru victims

Most of 376 the passengers aboard ship were denied entry into Canada in 1914

Most Read