Success Story: Refinancing mid-term with NO penalties

We love sharing stories of how homeowners can use their home equity to improve their financial situation. Today, we’re spotlighting a couple who turned their townhouse into a tool for reducing debt and boosting cash flow.

The Situation:

This couple purchased a beautiful townhouse in 2021 for $800,000. Since then, the value of their home has increased to $1,025,000—a gain of $225,000 in just a few years. Their current mortgage balance is $618,000.

While working hard to pay down their mortgage, they had accumulated some high-interest debt on their unsecured lines of credit and credit cards. Managing those payments was becoming a challenge, so they sought a better solution to ease their monthly financial burden.

The Solution:

With the value of their home rising, we decided to refinance their mortgage. By doing so, they accessed $135,000 of their home equity, which allowed them to pay off their high-interest line of credit and credit card debts.

The Benefits:

The refinance provided several important benefits:

• They managed to save $800 per month in cash flow, significantly reducing their monthly expenses.
• They consolidated their debts into a single mortgage payment with a lower interest rate, reducing the total amount they were paying in interest each month.

Now, that extra $800 a month can go toward saving, investing, or improving their lifestyle—all because of a smart financial move using their home equity.

Conclusion:

This story is a great example of how homeowners can leverage their home equity to strengthen their financial position. If you’re looking to consolidate debt, free up cash flow, or explore other financial options, refinancing could be a solution for you. Even if your mortgage renewal is years away, you may still refinance your property without penalty.

Your home’s equity might be the key to improving your financial health!

Contact me at AccessMyHomeEquity.ca to learn more about how refinancing can help your family make the most of your home’s value.

Igor Morgun | Mortgage Broker

Email: igor@morgun.ca

Phone: 604-362-4467

Web: www.igormorgun.ca