Hi people,
I am hoping I can get some advice on whether it makes sense to refinance my mortgage to access a better rate. I've found low rates on ratehub.ca through CanWise financial.
Current situation:
Home Value: 425,000
Outstanding mortgage balance: 210,000
7 Year fixed mortgage rate: 3.59%
Home was purchased in mid 2018 (I put about 45% down on it)
I am 2.5 years into my 7 year fixed mortgage with a major bank with a total ammortization period of 25 years (only 22.5 long years before its paid off). I am a first time home owner.
Would it make sense to refinance on a 5 year fixed at this point at a rate of 1.79%? I found this calculator:
https://www.ratehub.ca/mortgage-refinance-calculator and it looks like I can save a bit of money, but the calculator is limited in that you can only run it for a 5 year or a 10 year fixed (not my oddball term length of 7 years).
If anyone in Canada has done this what are some potential pitfalls to avoid? Is refinancing a giant pain in the ass?
Has anyone used the alternative lenders available like CanWise Financial? It looks like the lowest refinancing rates that big banks offer are about 2.10%, which is still considerably lower than my current rate.
Any information is much appreciated.