MONTREAL — Many Canadian homeowners are facing sticker shock with their monthly payments as their mortgage comes up for renewal, leaving them with a crucial choice: whether to renew or refinance their home loan.
For those with thinner wallets, "you're refinancing in order to re-amortize to a longer period of time to ease those payments," Zlatkin said. “There's been a high number of customers liquidating some of those savings that they have and putting it toward their mortgage,” said Nick Palucci, senior director of client strategy at the Royal Bank of Canada.Those on the hunt for a better rate than the one offered by their lender can seek the help of a mortgage broker.
Homeowners that opt to refinance should keep in mind it can come with legal and appraisal fees, while doing so before the mortgage term ends comes with a penalty. "Maybe you didn't have a home equity line of credit ... because your lender didn't allow you to do a home equity line of credit, and you had to use your credit cards. So now you feel you have to refinance."“My favourite strategy: good friends and good family," Halpern said.