Refinancing FAQ

Q: What is a HELOC (Home Equity Line of Credit)?

Home Equity Line of Credit (HELOC) is a type of mortgage that is secured against your home. As you pay off your mortgage and build up equity in your home, a HELOC allows you to gain access to your home equity to use the funds you need. But keep in mind that you cannot exceed 65% of your home’s value. People usually use HELOC to:

• Consolidate high-interest debt (for example: pay off credit cards)
• Renovate their home
• Pay for higher education, expand your current business, etc…

Q: Why should I consider refinancing my existing Mortgage?

There are numerous reasons why borrowers may choose to refinance the mortgage they already have. Some of these include:

Consolidating high-interest debts into a much better financial plan with:

• Lower rate
• Lower monthly payment
• Shortened mortgage terms

Renovate your existing property

• Personal investments (i.e: expand your current business; pay for post-secondary education cost; purchase a new car…)
• Purchase an investment property

Q: What documents are required to get a mortgage?

Since January, 1, 2018, the government imposed mortgage rules requiring us to collect more documents up front:

• Online Application
• Photo ID
• Salary Letter from Employer
• Recent paystub (within 30 days of the completed application)
• Previous year T4

However, required documents vary from case to case. Please chat with us so we can do the heavy lifting for you.