Mortgage Refinance in Red Deer, AB
A mortgage refinance in Red Deer lets you turn part of your home's value into cash by replacing your current mortgage with a bigger one. If you own in Anders, Clearview or Timberlands and you're weighing a suite or a second property, a refinance can fund either one. We work out which lenders will finance what you're planning, and in most cases the lender pays us, so our help costs you nothing.
Can I refinance to add a basement suite?
Yes, through a Canada Mortgage and Housing Corporation program that insures a refinance up to 90% of the home's value after the suite is built. The money has to go toward the self-contained suite, the home must be worth under $2 million with no more than 4 units, and no other cash can come out. The amortization can go up to 30 years, which keeps the payment lower while the suite's rent starts coming in. Talk to us before the build starts so the lender's paperwork lines up with your contractor's plan.
Will a refinance affect whether I qualify to buy a rental?
It will, since the bigger mortgage payment counts in your debt load when the next lender reviews you. You're tested at the greater of your contract rate plus 2% or 5.25%, so we plan the refinance and the purchase together and build your Red Deer mortgage pre-approval around both. Signing them in the wrong order can shrink what you qualify for, so call us before you sign either one.
What happens to my home equity loan if I sell?
A home equity loan or line of credit is paid off from your sale proceeds at closing, along with the first mortgage. Your lawyer handles the payout, and what's left comes to you. If you're selling and buying at the same time, our Red Deer bridge financing page covers how to use that equity before the sale closes.
Book your free Red Deer refinance call
Book a free call or phone 604-262-3500, and tell us if a suite, a rental or paying down debt is the goal so we can bring the right lenders to the conversation.
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
Are there government fees to refinance in Alberta?
Alberta has no land transfer tax. Land Titles charges $50 plus $5 for each $5,000 of the new mortgage to register it, which comes to about $550 on a $500,000 mortgage, so budget for that along with legal fees.
Do I need to move my mortgage over to you to refinance?
You can refinance with your current lender or a new one, and we'll price both. If your lender comes out ahead once the penalty for breaking early is counted, we'll tell you to stay.
Can I take cash out when I switch lenders at renewal?
A straight switch at renewal can skip the stress test, but that rule allows no equity out and up to $3,000 added for fees, so a cash-out refinance goes through full qualifying.