Should I Refinance My Mortgage to Pay Off Debt?

Should I Refinance My Mortgage to Pay Off Debt? Jason Scott, Edmonton Mortgage Broker

Should I Refinance My Mortgage to Pay Off Debt?

Welcome to 2023, and happy New Year’s! Hopefully you had a great holiday season. Hopefully you didn’t overspend, but just in case you did and those credit cards bills are coming in with holiday purchases. It might be time to look at your mortgage and see if it makes sense to refinance. It’s not ideal to refinance your mortgage to pay off consumer debt, but if you’re running into cash flow issues, it’s something worth considering. Now, there are a couple of requirements before you can actually refinance your home. The biggest one is that there’s a federal government rule that says in a refinance you cannot borrow more than 80% of the value of your house. So, you know, quick example if your house was worth $400,000 you can only borrow up to $320,000. So you know, if you owed 350, you can’t refinance. If you owed 300, well there’s potentially $20,000 that you can access to pay off more expensive debt. Again, if you’re refinancing it’s going to impact your mortgage in terms of the rate. You may even have payout penalties. So you’ve got to make sure that it makes sense financially to do it. I can help you with that to figure out, you know which way is the best way forward. So feel free to reach out to me!

I have a great video on renewing your mortgage too.

About Jason Scott, Edmonton Mortgage Broker

Looking for a personalized mortgage solution? As an Edmonton Mortgage Associate, I’ll be your trusted partner who will help you get the right mortgage for your family home or Investment property. I’m Jason Scott, and I’ll be your Mortgage Broker Edmonton.