Refinance to Consolidate Consumer Debt
Refi & Save Interest By Eliminating Credit Card Debt
Do you currently own a home and have more than 20% equity in the property? Do you have credit card or other consumer debt, student loans, or other balances which are charging you high interest rates? While your mortgage may not be your only debt, it’s almost certainly your least expensive debt. So why not consider consolidating by taking equity out of your home, paying off your other debts and ending up with a single monthly payment at a much lower interest rate? You’ll save thousands over paying off credit cards and unsecured lines of credit with much higher rates of interest.
Refi to Renovate or Improve Your Home?
A home mortgage refinance can also be a great way to obtain the necessary funds to complete additions, renovations, or other home and property improvements. With mortgage loans offering much lower interest rates than any other type of financing option, you will surely save a significant amount of money over time!
Refinance to Get a Lower Interest Rate
With interest rates slowly inching up, now is a great time to refinance your current mortgage and lock in at a lower rate. To discuss your options, contact me for a free, no-obligation analysis to determine what makes the most sense for your situation.
CMHC Mortgage Insurance Product Features for Refinancing
- Loan-to-Value ratios up to 80% for 1 – 4 unit owner-occupied properties.
- Maximum additional funds of $200,000.
- Funds can be used for a variety of purposes.
- Flexible financing options – Single & progress advances.
- CMHC offers mortgage loan insurance premium refunds for homeowners who refinance to make energy-saving renovations to an existing home. See CMHC Green Home for more information.
CMHC Refinance Property Mortgage Insurance Highlights
| Loan Purpose | Refinance / Refi |
| Number of Units | 1- 4 units (no commercial component) |
| Loan-to-Value (LTV) Ratio | Up to 80% based on as-is or as-improved value |
| Maximum Additional Funds | $200,000 |
| Purpose of Funds | Any purpose, except default management |
| Maximum Amortization | 40 years |
| Occupancy |
At initiation, the property that secures a CMHC-insured mortgage loan must be intended for occupancy at some point during the year by a borrower; or a relative of the borrower on a rent-free basis. Lenders must confirm owner occupancy and maintain the confirmation on file. |
| Borrower Eligibility | Permanent Residents including newcomers to Canada. Not available for non-permanent residents |
| General Property Requirements |
|
| General Guideline for History of Managing Credit (Credit Score) |
LTV 60.01% – 80%: Minimum score of 580 LTV < 60%: No minimum score required Access your credit score and credit report from Equifax or Transunion. |
| Debt Service Guideline |
Credit score less than 680 must have a GDS of 35% and TDS of 42% Credit score of 680 or greater must have a TDS of 44% |
| Loan Security | First or Second Mortgage, Chattel Mortgage |
| Interest Rate Types | Fixed, capped and standard variable, and adjustable |
CMHC Refinance Premiums for Owner Occupied Properties
| Loan to Value (LTV) Ratio | Premium on Total Loan Amount | Premium on Increase to Loan Amount for Refinance |
| Up to and including 65% | 0.50% | 0.50% |
| Up to and including 75% | 0.65% | 2.25% |
| Up to and including 80% | 1.00% | 2.75% |
Surcharges for Extended Amortization & Blended Amortization
Extended Amortization
Add 0.20% for every 5 years of amortization beyond the 25 year mortgage amortization period
Blended Amortization
For Refinance, add 0.50%
Thinking about refinancing to consolidate consumer debt or to take advantage of low interest rates? Contact us about refi options and how much refinancing your current mortgage can save you over the mortgage term. We are looking forward to working with you!
Please note, all information provided on this page are provided by Home Mortgage Ontario, but should be confirmed by visiting the Canada Mortgage and Housing Corporation (CMHC) website.
Kyle Pearce
Home Mortgage Ontario Agent, M12000636
Phone 519-818-0078
Fax 519-966-6702
Email [email protected]
Office 2985 Dougall Avenue, Windsor, Ontario N9E 1S1
Contact Us and expect a response within 24-hours!
Located in Windsor, Ontario, we specialize in home mortgages of all types in Essex County and across Ontario.
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The Mortgage Centre has decades of experience providing Canadians with mortgage financing through a team of nationwide independent Mortgage Centre offices. Because we’re local business professionals with roots in our communities, we are dedicated to helping our clients make well informed financing decisions.
