Best Mortgage Refinance Companies in Vancouver

Frequently Asked Questions

• Introduction

  Refinancing a mortgage can be a complicated process, and hiring a mortgage refinancing broker can make it simpler and faster. There are several things you can do to protect your interests and help your broker complete the process for you.
  

  
  

  Check a potential broker’s online reviews to find one with a good reputation. In addition to the opinions of past clients, check to see if a broker has an online portfolio, which can support the reviews you find from past clients to show a broker’s trustworthiness. This can also help you establish if a broker has handled financing for properties similar to yours.
  

  
  

  Get a written summary of a broker’s rates before committing so you know exactly what hiring your chosen mortgage refinance broker will cost. Find out which lenders work with your broker and what information they need to successfully refinance your mortgage.
  

• In Vancouver, what does it mean to refinance a mortgage?

  Refinancing a mortgage in Vancouver pertains to borrowing money using a mortgage to pay off a pre-existing mortgage using the same house as collateral. The proceeds of the second loan are used to pay off the initial obligation. Borrowers must note that mortgages may have prepayment penalties that need to be paid when refinancing.

• What are the reasons for refinancing a mortgage in Vancouver?

  A person in Vancouver may wish to refinance a loan to consolidate multiple debts into a single obligation. There could be remodeling projects that need to be completed or vital repairs that cannot wait. A borrower may also want to pay off a loan faster and forego the prolonged term in the original contract.

• At what point in Vancouver is it worth it to refinance using a loan with a lower interest rate?

  In Vancouver, it is worth it to refinance to a loan with a lower interest rate once a borrower can remove 1% from an existing loan's rate. This is the point where the savings over time will justify the costs of obtaining a new loan, costs such as the title search, application fees, and closing processes.

• In Vancouver, why is it risky to refinance from a fixed-rate to an adjustable-rate mortgage?

  In Vancouver, refinancing from a fixed-rate to an adjustable-rate mortgage is risky because the applicant runs the risk that interest rates will rise and go beyond the current fixed rate one is currently paying. Switching to an adjustable rate will only make sense if rates remain stable or go down. Otherwise, it is better to stay where one already is.

• In Vancouver, what are the factors considered when processing loans and refinancing options?

  When processing and refinancing loans in Vancouver, mortgage companies and brokers look into a person's tax information and proof of income. Documents such as 1099s and W-2s from the previous two years will be scrutinized, as will pay stubs. An applicant's debt details will be examined ranging from credit scores to documents evidencing existing obligations.

• How do you refinance a mortgage?

  Decide why you’re refinancing, such as to get a lower interest rate, pay off your loan faster, or to get a lower monthly payment. Share your credit information with your broker along with information about the equity you have in your home. Review your mortgage refinance broker’s quotes and choose the best loan terms.