If you’re paying a mortgage with a higher interest rate, recently lowered rates might make this an ideal time to refinance.
The same may be true if these uncertain times have you wanting to access equity to pay down higher-interest debts, suggests Kam Brar, owner of Auxilium Mortgage.
The key is exploring your whole financial picture with an experienced, independent mortgage broker to determine if refinancing today is your best option, adds Kam, who brings clients more than 20 years in the lending industry. In fact, in March 2020 Auxilium reached the significant milestone of $500 million in funded mortgages, with over 1,400 mortgage transactions completed.
“Everybody is unique,” he says. “We think of ourselves as advisors and we’ve been around for years, so we understand the different situations people may be experiencing.”
- Is refinancing worthwhile? That comprehensive review will consider factors such as the penalties required to exit your existing mortgage. If they’re too high, a change may not make financial sense, even with lower rates.
- Is it a smart move longterm? “A home is one of your biggest investments, but if you treat it like a piggybank, once you break it open, you lose the value of what’s inside,” Kam says. “If you’re accessing equity to pay off higher-interest debts or stabilize cash flow, it may make sense. If you simply want to pay for a vacation or new recreational vehicle, refinancing likely isn’t the best way to do it.”
- How does your mortgage fit into your financial picture? “A mortgage is one piece of the overall puzzle,” Kam reflects. “We look at where you’re at right now, and where you want to be.”
- Is now the best time? Homeowners can typically access up to 80 per cent of the overall value of their property. If the market corrects in response to COVID-19, your home’s available equity could suddenly be much lower. “We have to be mindful of that, and might want to look at this sooner rather than later.” And while approvals can be quite quick – typically 24 to 48 hours – “it’s important not to leave it to the 11th hour.”
With a team of four mortgage brokers and five support staff, at least five people are focused on any given Auxilium file to find the client their best solution. That includes some specialized products unavailable to the more restrictive requirements of the big banks.
And in today’s social distancing reality, virtual meetings, electronic signing and encrypted file transfers are all part of Auxilium’s service. “We’re set up to receive your documents securely – not everybody can do that.”
A BBB-accredited business and 2018 Torch Award winner serving the West Shore since 2008, a downtown Victoria satellite office was opened last year to provide clients added convenience. This commitment to exceptional service is evident in their approach – and the numerous reviews Auxilium Mortgage clients share.
“I’d say our biggest strength is communication. We pride ourselves as a group on staying connected and being responsive,” Kam says.
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Learn more at auxiliummortgage.com or call 250-590-6520 to arrange your consultation.