Second Mortgage vs. Refinance

Contrary to what your bank might suggest, refinancing your existing first mortgage might not always be the optimal choice. At PML, we engage in a meticulous cost-benefit analysis, considering key factors that influence your decision.
Here are the pivotal elements impacting the suitability of mortgage refinancing:

• Loan Payback Terms:

Evaluate how long you intend to utilize the borrowed funds. If the payback is within a year or two, the costs associated with first mortgage refinancing may not be justified.

• Current Mortgage Terms:

The time remaining until your mortgage is up for renewal plays a crucial role. Breaking a mortgage with major Canadian banks could incur substantial penalties, often reaching tens of thousands of dollars.

• New Mortgage Rate:

Assess the refinancing rate being offered. Understanding how borrowing more money will affect the overall interest rate on your debt is essential. Adding even a small amount to your existing mortgage at a higher rate could result insignificant additional interest costs.

• Financial Flexibility:

If you’re not currently eligible for a favorable rate, PML LoanTech offers a solution. By leaving your initial mortgage untouched and opting for a Second Mortgage loan, you gain time to enhance your financial standing. This positions you for a more advantageous refinance option when the timing is right.