Refinancing during COVID, is it a good idea? Our lender’s partners are continuing to operate and we are here to help. Whether that’s for a deferral of a mortgage payment or a consolidation of accumulated debt in a refinance. Or is it worth considering a proactive refinance if you believe in the near future you may be economically impacted? Let’s not have COVID get in the way of your family’s financial health.
Here are few considerations…
Up for Renewal
If you’re coming up for renewal in the next six months, now’s the time to think about whether you will roll over on a new term straight renewal or consider a refinance.
This is a good time to access equity as you would not face any pre-payment fees to transact at the maturity date of your existing mortgage. Processing fees would still be part of it such as a legal to re-register the new refinance a mortgage and a potential appraisal if required.
Mid-Term Mortgage
These deals involve some notion of a pre-payment exit fee from your existing contractual obligations. We will evaluate if it makes sense to consider by taking a look at your current mortgage, replaced with a new one, and the consolidation of higher interest rate debt. This will quickly boost cash flow, improve credit scores, and reduce interest expenses.
On Appraisals
Full appraisals if required by the lender are now modified as per the direction of the Appraisal Institute of Canada. This means no interior inspection will take place as normally completed. The appraiser is instructed to arrive at your home, complete an exterior inspection along with pictures, and then connect with you over the phone to ask questions regarding the interior. They guide you through your home and instruct you to take pictures of the main areas to provide via email. No physical contact is made keeping everyone safe.
On legal processing
Many lawyers have made the appropriate accommodations to operate safely and efficiently utilizing the latest technology available to transact. Safe to say, real estate lawyers are here for your needs as well. There are also title companies who can process a straightforward refinance as well at a fixed expense. They are also utilizing ZOOM/FaceTime for meetings and couriers for documents. If it’s a rush deal or has a fixed closing date such as a mortgage maturity date, it may be best to use a real estate lawyer to ensure a timely closing.
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