These record-low rates offer a rare opportunity to shave hundreds of dollars off your monthly mortgage payments, and tens of thousands off the total cost of your loan.

Even if you’ve only had your current mortgage for a year or two, refinancing could save you a bundle — that is, if you act soon.

Trying to time the market could cost you

As the pandemic drags on and rates keep dropping, you might be tempted “time the market” with refinancing to see how low they’ll go. That’s a risky move

Why? Because it’s impossible to predict how long these bargain rates will last. Waiting even a day too long could cause you to lose out on major savings.

So don’t try to be a hero — lock in a low mortgage rate while you still can.

Make sure a refi is the right call

The goal of refinancing is to save money, so it’s important to ensure that the fees you’ll pay won’t outweigh the amount you’ll save.

Some of the typical costs of refinancing include legal fees ($700 to $1,000), your mortgage registration fee (around $70), and a discharge fee (up to $400) if you happen to change lenders.

You’ll also be on the hook for a prepayment penalty for breaking your existing mortgage early, which can cost as much as 4% of your total loan.

But don’t let any of that discourage you. With rates at all-time lows right now, even with all the hefty fees you’ll likely still save thousands of dollars by refinancing.

And with the help of a free service like Loans Canada, you can feel confident that you’re making a smart move — and getting the lowest rate possible.

How Loans Canada works

Loans Canada uses proprietary matching technology to find you the best loan for your needs from Canada’s top lenders, saving you the hassle of shopping around for rates on your own.

Just fill out a quick application and Loans Canada will do all the legwork for you.

They’ll also connect you with a mortgage refinancing specialist who can address any questions or concerns you might have regarding your refi.

Loans Canada is totally free to use and it only takes a few minutes to apply. So sign up today — it could save you thousands of dollars.

About the Author

Shane Murphy

Shane Murphy

Reporter

Shane is a reporter for MoneyWise. He holds a bachelor’s degree in English Language & Literature from Western University and is a graduate of the Algonquin College Scriptwriting program.