You may be thinking of refinancing your mortgage given that the interest rates are unprecedentedly low.

Refinancing your mortgage can help you preserve your credit score by using the equity in your home to consolidate high interest debt.

This is often a great option because not only can you reduce interest, you can also reduce your overall monthly payments.

Here’s a list of pros and cons that will help determine if mortgage refinancing is the right option for you!

Should I refinance my mortgage? How exactly should I go about refinancing? Would the changes in mortgage regulations impact me?

These are questions that a lot of people, who are considering refinancing, are wondering about. The answer is actually not that complicated – it simply means that you have to reach outside of the CMHC lender pool.

Recently, CMHC changed its underwriting policies for new applications for insured mortgages.

Though, the rules haven’t changed for refinancing, reaching outside the CMHC lender pool can provide you better refinancing options.

Basically, CMHC is a high ratio insurance that banks are required to have on high ratio mortgages. High ratio mortgages are those where mortgage financing above 75% of the value of your property is required.

The good news is that there are many lenders who extend mortgage financing to you and don’t require CMHC insurance. In fact, they can extend the financing for 80% of your home’s value (or even higher if you have good credit).

There are quite a few trust companies, mortgage investment companies, credit unions, finance companies, private lenders, and even insurance companies that offer mortgage refinancing options.

The prevalence of these lenders may not be that obvious to you because many don’t deal directly with the public and exclusively lend through brokers.

Each broker has a market of consumers that they cater to and lenders who they work with to provide specialized financial products. For example, if the goal is to purchase a home, a broker who specializes in purchase mortgages is advantageous. Similarly, a broker who specializes in debt consolidation and restructuring is the right choice for someone who wants to consolidate debt.

The trick is choosing the right broker to help you manage your financial restructuring.

You’d be surprised to see how many different types of mortgages and refinancing options are available on the market (for people with all types of credit and income) – many of which don’t require CMHC.

At DebtCare, we specialize in helping people with financial problems. We have an extensive network of higher risk lenders, who can help you save your home, when banks may not be able to.

In addition to mortgage refinancing, we can help present you all other options you have to ensure that you can effectively manage your debt. If you’re looking into refinancing options or want to speak to a debt consultant, contact us today for a free consultation. Call 1-888-890-0888 or visit www.debtcare.ca