Mortgage Refinancing in Vancouver, BC
Mortgage refinancing is any time that you change your mortgage during the current term of the mortgage.
You may change the mortgage for a lower interest rate or the amount of the mortgage. Some people will take advantage of a low mortgage interest rate and increase their mortgage to pay off debt that they have that is at a high interest level. Mortgage Refinancing can make sense when you look at the overall financial picture to see if it would benefit you to make the change. When you do decide to refinance and break your current mortgage term, you will end up having to pay a mortgage penalty. The mortgage penalty will either be three months interest or IRD (Interest Rate Differential) whichever one is greater on a fixed rate mortgage. If you have a variable rate mortgage you will only have to pay the 3 months interest penalty. If you have an open mortgage you will not have any penalty to pay but your interest rate will typically be higher then that of a closed variable or fixed interest rate.