Articles

Time for a Financial Reset with Mortgage Refinancing

Blog-Date-1Oct 05, 2021

For many Ontarians, the fall is all about getting back to school and back into the swing of work after the summer holidays. This year, autumn is also a great time to help your clients with a financial reset with mortgage refinancing.

Over the past 18 months, many Canadians have been accumulating debt at higher levels than normal as their incomes have been squeezed during the pandemic.

If you have clients in this situation, you may have an opportunity as a mortgage broker to help them boost their financial wellbeing through debt consolidation and refinancing.

A financial wellness check

The good news for Canadians is that the economy seems to be moving in a positive direction. The bad news for some, however, is that government support programs are winding down.

If you have a homeowner client struggling with high debt loads, current increased property values may offer opportunities for refinancing and a reset of their financial situation.

To determine whether debt consolidation through mortgage refinancing may be a good option for your client, start with a financial wellness check:

  • Current mortgage debt. Review your client’s mortgage payment history and assess their loan-to-value ratio based on their current property value.
  • Other debts. Compile an up-to-date list of all non-mortgage debt to gain a detailed understanding of your client’s overall financial situation.
  • Income sources. Gather records of your client’s current income from employment or other sources.

Reviewing this information with your client will help you measure any income shortfalls and identify opportunities to pay off high-interest debt through mortgage refinancing.

Notebook and pen

Refinancing with a flexible Pillar mortgage

If your client is struggling with mounting debts, refinancing can put them in a better financial position.

As their broker, you can help show your client how refinancing with a 1–2 year transitional mortgage can help them more efficiently manage their credit and pay less interest in the long run.

At Pillar, we have experience helping borrowers with this type of financial reset. This includes working with brokers to provide mortgages for:

  • Discharged bankruptcies
  • Paying out taxes owing
  • Paying out consumer proposals
  • Irregular cash-flow situations

By providing flexible mortgage solutions, we can provide your client with short-term financial relief to improve their financial position. Our goal is to help your client transition within 1–2 years to another lender with a lower interest rate for the long term.

Do you have a client who might benefit from mortgage refinancing? Contact our business development team to discuss your client’s needs. You can also submit your deal directly to Pillar via Filogix. Pillar is here to help if your client needs a financial reset with mortgage refinancing!

Join our upcoming rural mortgage webinars

Want to learn more about best practices for securing flexible mortgages for either purchasing or refinancing diverse rural property types? Join one of our upcoming webinars on October 26 or November 10!

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