Refinancing your mortgage may save you money in the longer term
Refinancing your mortgage is when you pay your mortgage out in full in order to obtain a new mortgage either with the same lender or a new lender. If you refinance before your current mortgage’s term ends, there will be prepayment penalties.
The most common reason for refinancing is to take advantage of mortgage rates lower than your current mortgage. It may also be worthwhile if you find your current mortgage features don’t meet your needs or your circumstances have changed.
It will make sense to refinance your mortgage if the differential between the old and new rate makes a big enough difference to overcome the penalty and save you money over the term of the new mortgage.
Blend and Extend
Many lenders allow you to "blend and extend" the rates. This works by taking your existing mortgage rate and blending and extending it with the new rate for a new term length at a weighted average. This option allows you to take advantage of lower interest rates now and also avoids the prepayment penalty.
Talk to us
If you are interested in refinancing your mortgage, or understanding more about the “blend and extend” option, reach out to your BlueShore financial advisor, or call us at 604.982.8000 (toll-free 1.888.713.6728), send us a message, or visit a local branch.
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