Mortgage Refinance in Lethbridge, AB
A mortgage refinance in Lethbridge gives you access to your home's equity by replacing your mortgage with a new one, often with a larger balance. In West Lethbridge or Copperwood, a refinance can clear a truck loan or pay for a renovation, and a line of credit can suit you if your income from agriculture moves around through the year. We compare what lenders will offer on your home, and in most cases the lender pays us, so our help costs you nothing.
With a line of credit, do I only pay interest and nothing on the principal?
On most home equity lines of credit the minimum payment covers the interest only, so the balance stays put unless you pay more. That can help in a slow month, and it means you choose how fast the debt goes away. The line of credit part is capped at 65% of your home's value, and anything from 65% up to 80% has to be a regular mortgage with principal payments built in. We'll help you split the borrowing so the money you plan to repay quickly goes on the line.
Do I have to move my mortgage over to you to tap my equity?
You don't have to move anything. We compare your current lender's refinance terms with other lenders and tell you which one costs less after any penalty, and if staying wins, that's what we'll recommend. If your term ends within a few months, our Lethbridge mortgage renewal page explains why it can pay to time the refinance with your renewal.
Does it make sense to refinance for only $25,000?
It can, as long as the penalty and legal costs don't use up most of the benefit. Each 1 percentage point on your rate changes the payment by about $57 to $60 a month per $100,000 borrowed over 30 years, so on a small amount the setup costs matter more than the rate. Alberta has no land transfer tax, and registering the new mortgage at Land Titles costs $50 plus $5 for each $5,000 of the full mortgage, about $550 on $500,000, and we'll add up every cost before you decide.
Book your free Lethbridge refinance call
Book a free call or phone 604-262-3500, and we'll work out your equity and your costs with you on the call.
Flow Mortgage Co. arranges mortgages through BRX Mortgage Inc. (operating as BRX Mortgage), licensed by the Real Estate Council of Alberta to deal in mortgages.
Frequently asked questions
Does a 30-year refinance restart the interest?
It starts a new payment schedule, and with a lower payment a bigger share of each early payment goes to interest. Most lenders allow yearly prepayments, so you can take the lower payment and pay extra when your income allows.
Will the refinance change what I can borrow for my next home?
Yes, the bigger payment reduces what you qualify for, so if a purchase is coming, get a Lethbridge mortgage pre-approval with the refinance included. You can usually borrow up to 80% of your home's value in a refinance, and mortgage insurance isn't available for a regular refinance.