Mortgage Refinance in Oshawa
Since the onset of the recession in 2008, government legislation has created tougher lending guidelines. One area that has been hard hit is the refinance market.
Once we were able to offer mortgage refinances to 95% of the value of a property, but the maximum amount is now 80% of the appraised value. Even appraised values are coming in lower in response to increased risk reduction.
Refinance plus improvement mortgages
One way to access some home equity is through a product called Refinance and Improve. With this program, you apply for a mortgage with the intention of renovating your home. An appraisal will be done to estimate the value of the home once improvements have been made.
Here’s how it works.
Current home value: $250,000
Current mortgage at 80% of value: $180,000
Amount of improvements (10% of current value): $25,000
Value of improved home: $275,000
Amount of Refinance and Improvement mortgage at completion: $205,000
This type of mortgage refinance is only for renovation situations, but it does allow home equity out when the current loan to value does not allow refinance under normal circumstance.
While refinance options have declined under the new mortgage rules since 2008, mortgage brokers still have ways to help you access some of your home equity. Call us at (866) 452-1100
to discuss your own financial goals and we’ll find you the best solution. We help clients in Oshawa and through Durham Ontario with their mortgage refinancing.
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