Applying To Refinance

Couple going over their finances before making an application to refinance their mortgage

Applying to Refinance

Refinancing your mortgage is no small decision, and for most people it may be the biggest financial decision they will make. Different lenders have different guidelines on the kind of borrowers they lend to. In some cases your credit and score dictates which lenders are available to you. Your Sunlite Mortgage agent has access to all the major mortgage lenders in Canada and with proper guidance will help make the process go very smoothly.

When choosing a mortgage broker here are some questions we often see:

What's the benefit of working with a mortgage broker?
At Sunlite Mortgage, we try to understand your needs and your unique situation and then shop the market and select the mortgage lender that will give the best rate based on your credit.
What to look for in a mortgage broker?
Do your research, try to find reviews. What does satisfied clients say? By reviewing and evaluating testimonial you will get a feel of whether you want to work with a mortgage broker or not.
Meet with your mortgage broker?
More and more mortgage business are being done online the best way to see if evaluate with mortgage broker is meeting and having a conversation with them.
Ask about the refinance process?
Ask about the average closing times(credit score, equity required, GDS/TDS ratios). Brokerages now have online applications, ask how long it takes for an application to be sent to the lender?

When applying with your spouse or anyone else on the loan, your lender will need documentation for their income as well in order to properly assess your financial situation.

Self-employed clients will need to provide 2 Years Tax Returns, 2 Years NOA, as well as their business registration.

The Costs of Refinance

Having your financial documents prepared before applying is important so you can close your mortgage quickly. The most common documents mortgage lenders ask for are:

Appraisal Fees: More than likely you will need an appraisal of your property completed. There are some programs that will allow you to skip this.

Legal Fees: These fees may occur when registering a charge against your property.

Prepayment Penalty: You may also need to pay a discharge fee to your current lender depending on your current loan terms.

When applying to refinance your mortgage you will receive an estimate of all fees and costs associated with it.

The Length of the Refinance Process

Refinancing your mortgage takes about 30 days to complete, there are a few variables to the process that can take extra time however. Third parties, such as appraisers, and solicitors are involved in the process to get your mortgage closed; this can cause potential delays.

The process can also be shorter or longer depending on the complexity of your financial situation. While in the process of refinancing your mortgage it is advisable to let your Sunlite Mortgage professional know of any changes in employment or income and to avoid opening any new lines of credit.

Pre approve Your Refinance Rate

For up to 120 days before your refinance, your Sunlite Mortgage agent could get you a mortgage pre approval and lock in your mortgage rate.Your pre approval will specify the term, interest rate and the mortgage amount. Should rates go up, your tate is protected and if rates fall the lower rate could be available.