Refinancing & Debt Consolidation

Let’s start off by assessing why you would like to refinance or pursue debt consolidation? I love to provide debt advice and money-saving suggestions and my goal is to find the right mortgage or debt repayment strategy for you.

There are many reasons why it could be beneficial to pay off your current mortgage and replace it with a new one. We will help you determine if this is the best road to take, and if we can help you on your way to getting out of debt. Read on to learn how to refinance a mortgage with Anita Groves Mortgages.

Here are some reasons why our clients refinance:
(1) To take advantage of new low interest rates (2) To access equity (cash) in their home for a variety of reasons (3) to consolidate loans and existing higher interest rate debt (4) to renovate (5) to help a child who is attending college (6) to purchase an investment property or (7) to scratch something off the bucket list!

In Canada, home owners can access up to 80% of their home’s value (85% with some lenders). Usually this is called an ETO or Equity Take Out. This is done by breaking a current mortgage and adding that current mortgage onto the new amount the client would like to access. Note that there are usually penalties involved in doing this.

An ETO can be done by getting a brand new mortgage with a different lender, taking out a home equity line of credit or blending and extending your mortgage with your current lender.

Associated Fees with Refinancing

The fees associated with refinancing your home depend on the strategy we use to access your equity. If the qualifying ratios are in your favour, we can add the penalty to break with your current lender into the requested mortgage amount. We can generally calculate what these penalties might be with a certain lender but it is also a good idea at this stage to contact your current mortgage holder first to find out if and what those fees will be. There will often be a 3-month interest penalty or an IRD (interest rate differential) calculation for breaking your mortgage. Each lender uses their own posted rates to determine the formula to break.

As well, you will always incur legal costs as a lawyer must change the financing on title.

We Believe There is a Place for Everyone

"Thank you for all your help. It has been a pleasure dealing with your firm. You guys made this very easy and pain free. I wish my sub-contractors would do the same. lol Take care and thank you to you and all at your office."Jason H.

Along with an application and signed consent to pull your credit report (credit determines what kind of borrower you are and have been in the past) we will request several income documents from you based on your type of income earned – whether you work for an employer or are self-employed. As well, there are many other questions we will need to ask you and the end result will be options that we provide based on your situation.

There are several ways you can submit an application to us. You may apply on-line here (link to app), by phone or in house, our office or your location. We can also fax you an application form if you wish.

We Believe There is a Place for Everyone

"When I began to seriously consider buying my first home, I started educating myself on the do's and don'ts of home buying and mortgages.  I began comparing the different mortgage rates that are posted and that is how Anita and Nancy at Family Lending came to help me solve all my mortgage problems and settle into my first home.  Anita and Nancy were able to answer all of my questions; they gave me many options to consider and even helped me save a considerable amount of money.  It felt like I had 24/7 mortgage broker assistance from the moment I was in contact with Anita and Nancy.  I knew that Anita and Nancy were committed to me from our first conversation.  Their commitment to customer service is not to be undervalued, on one occasion in particular, Anita and Nancy took the time on a Friday evening, at the start of a long weekend to help me through the process.  In summary, Anita and Nancy at Family Lending were professional, courteous and their penchant for hard work on my behalf ensures that I will return as a customer for all of my mortgage solutions."Trevor V.

There are certain guidelines that the applicant must meet in order to refinance and one of them is to verify property value. This is usually done by way of an appraisal and/or inspection report. Lenders will condition this in the commitment and will provide an approved appraisal list or an online automated appraisal service that they mandate us to use. In turn, we order the appraisal on your behalf. That appraiser will then contact you and determine a convenient time for both parties. This report is sent directly to the lender. In some cases, we will order the appraisal ahead of time (we will find out who the approved appraiser is) if we think that the value might present a tight margin for the ratios we are using for you to qualify. Again with a refinance it is 80% loan to value. Once the value is determined we then proceed with your mortgage transaction.

We Believe There is a Place for Everyone

"Building your own home can bring on different challenges than buying a home.  Sometimes these challenges can seem insurmountable.  Anita had quick, solid solutions to every curve in the road, which allowed me to focus on the actual building.  The final outcome was an affordable, common sense financial plan that allowed me to enjoy my home.  No doubt my next build, which because of Anita's long-term financial strategies can and will happen and will include Anita and her team in the plans!  A truly, truly satisfied client and friend."Marie B.

It is our job to sell your application to the lender and make sure you get the best possible rate and terms for your situation. At this time, the lender has reviewed the application we have submitted and they now will issue a commitment of approval.

This approval will be subject to meeting certain conditions such as income documents, appraisal report, etc. It will state specifically which documents the lender requires for income such as NOA’s, T1 Generals, paystubs, employment letters, etc. We usually request these documents from you up front and already have them on file.

We Believe There is a Place for Everyone

"I heard of Anita through another mortgage broker as my situation of being on maternity leave wasn't cut and dry. Anita and Nancy were always there for my questions, concerns & to just run stuff past them through out the whole process. They never made me feel like I was bugging them. They worked so hard to get me the best mortgage they could for my first house and I couldn't have been happier with the service. Top Notch!"Lea-Andra R.

Each commitment is different and targets specific criteria. The commitment comes to us directly. We do up what we refer to as the “signing package” and have you come in and sign. At this point, we still have the ability to change the rate and term, payment amount or frequency, etc. (as long as your ratios are still in line with what is acceptable to the lender). We can also send the signing package by email.  In this case, we also like to review this package with you page by page which can be done over the phone. There are other documents included in our signing package. We are mandated as mortgage agents and brokers to provide certain information; discussing fees, closing costs, mortgage insurance, etc. We go over all of this and provide a copy of this package to you.

Recommended Financial Advisors

Once you have chosen a real estate lawyer to work with, we provide their contact information to the lender. As part of our service to you, we then forward all of the documentation your solicitor requires to their office. In time, the lender will then send “Instructions” to your lawyer’s office. These Instructions are similar to the Commitment that we receive only this time now with a list of conditions that your solicitor is mandated to meet on your behalf. These conditions could consist of providing house insurance verification, confirming and requesting a payout statement from your current lender, etc. You will have a meeting with your lawyer, prior to closing to confirm all of the details and provide legal signatures.

If you don’t have or know a lawyer, we will be glad to refer you to one.

Recommended Lawyers

ready_to_refinanceOnce your lawyer has completed the work, your new mortgage is now registered and in place. Sit back, relax, enjoy the benefits of what this new mortgage will achieve. If you have any questions don’t hesitate to contact our office.

We Believe There is a Place for Everyone

"I found that working with Anita to be a great experience. She got me the best deal and got me the most out of what was on offer to me from all the banks. I will definitely be using Anita again for all of my mortgage needs. I cannot recommend her highly enough. The lines of communication were always open and easy. Thanks so much for working with me Anita."Sam.