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

Ed Holden owns and operates The Christmas Store at Potters, located on 48th Avenue in Surrey. (Photo: Tom Zillich)
‘B.C. Buy Local Week’ kicks off with urgent plea to holiday shoppers

‘Local businesses are just hanging on,’ says organizer of the week-long campaign

One man is dead after a shooting in Fleetwood Sunday evening. (Shane MacKichan photos)
UPDATE: Police ask for dash cam videos after 29-year-old man shot dead in Surrey

Incident took place near shopping complex at the corner of 152 Street and Fraser Highway

File photo
Man, 68, charged with arson, assault and threatening in Whalley summer fire

David Thind charged in connection with a house fire in the 13000-block of 112A Avenue on Aug. 28

(Delta Police Department photo)
Scam-savvy North Delta couple help would-be victims avoid Bitcoin fraud

Mike’s Convenience Store owners have stopped several folks from being scammed at their Bitcoin ATM

Swimmer Arianna Hunsicker outside the pool at Surrey Sport & Leisure Complex. The Surrey Knights swim club member is aiming to compete at the Paralympic Games in Tokyo next summer. (Photo: Tom Zillich)
Surrey swimmer aims for Paralympic Games amid COVID-19 challenges at Fleetwood pool

Arianna Hunsicker and other Knights club members train at the only public pool open in Surrey

A bus shelter in White Rock is emblazoned with an ad from B.C.’s Office of the Human Rights Commissioner on Sunday, Nov. 29, 2020. (Black Press Media files)
VIDEO: ‘Am I racist?’ campaign asks British Columbians to confront their unconscious biases

Signs asking British Columbians to think about racial injustice have been put up across the province

Black Press Media and BraveFace have come together to support children facing life-threatening conditions. Net proceeds from these washable, reusable, three-layer masks go to Make-A-Wish Foundation BC & Yukon.
Put on a BraveFace: Help make children’s wishes come true

Black Press Media, BraveFace host mask fundraiser for Make-A-Wish Foundation

Kootenay East MLA Tom Shypitka takes over as energy and mines critic for the B.C. Liberal opposition. Kelowna-Lake Country MLA Norm Letnick (right) moves from health critic to assistant deputy speaker. (Hansard TV)
B.C. Liberals pick critics to take on Horgan’s NDP majority

Interim leader Shirley Bond takes seniors, long-term care

B.C. Supreme Court in Vancouver. (Black Press Media files)
Judge hears Langley development case that could end in mayor, councillors booted out of council

The conflict of interest case was launched by local voters a year ago

Deputy Prime Minister and Minister of Finance Chrystia Freeland listens to a question from a reporter on the phone during a news conference in Ottawa, Monday, Nov. 30, 2020. THE CANADIAN PRESS/Adrian Wyld
Spending too little worse than spending too much, Freeland says as Canada’s deficit tops $381B

‘The risk of providing too little support now outweighs that of providing too much’

Still from a video surveillance camera of a man alleged to have stolen from several people at knife-point in Chilliwack (Rosedale) early on Nov. 28, 2020. (Facebook)
B.C. man defends his family against intruder, saves neighbour while wielding hockey stick

RCMP looking for footage that captures violent crime spree in Chilliwack

Harbour seals rest on log booms at Flavelle Mill in Port Hardy. With recent announcements the mill will be getting rid of the log booms, Dr. David Rosen sees an opportunity to study how the disappearance of this highly-frequented refuge for the seals will alter their behaviour in Burrard Inlet. (Photo supplied by David Rosen)
What the heck is going on with marine mamals in Vancouver waterways?

UBC researcher asks why they’re returning, and what role we’re playing

Jim Neufeld, 55, was last seen leaving his home in Penticton Jan. 21, 2009. (RCMP photo)
Human remains found off U.S. coast in 2009 identified as Penticton man

Jim Neufeld, 55, was last seen leaving his home in Penticton Jan. 21, 2009

Former Pitt Meadows mayor John Becker at his former law office. (News files)
Former Pitt Meadows mayor suspended from practising law for 14 months

Statement from John Becker says anxiety and depression played role

Most Read