Should you break your mortgage for a lower rate?

Yes and no. When you break your mortgage contract to renew your mortgage at a new rate and a new term, you're faced with a prepayment charge to reimburse your financial institution for the lost interest income. As a basic rule of thumb, the pre-payment charge is based on three months interest or the interest rate differential (the difference between your present mortgage rate for the balance of your term and the current rate your institution is offering) whichever is greater.

The amount of the pre-payment charge will tell you whether or not you should renegotiate your interest rate. Generally speaking, the smaller the mortgage amount - the smaller the penalty, and the more attractive early renewal becomes. On the other hand, the larger the mortgage amount, the greater the charge, which makes early renewal less desirable.

Since we have information on most lenders, we can easily make the calculations to determine if you should break your mortgage to take advantage of current lower rates. We'll make your decision easy with all the information presented to you after one quick consultation.

When the current discounted rates are lower than your existing mortgage, and the savings are greater than your early renewal penalty, we can notify you of the opportunity to switch your mortgage and save money. It's that simple. You choose when and where you switch your mortgage. There are NO additional fees to you, only a savings in mortgage interest

Mortgage refinance is becoming a popular financial remedy, especially for those who are burdened by large monthly installments or multiple debts. Mortgage refinance can prove beneficial in several ways :

• Helps obtain a lower fixed rate
  The interest on a fixed rate mortgage that you took several years ago may have dropped drastically. Refinancing the existing mortgage will entitle you to avail of the reduced interest rate.
• Convert an Adjustable Rate Mortgage into a Fixed Rate Mortgage
  The interest rates on an adjustable rate mortgage (ARM) might be low initially, but the fluctuations are unpredictable. Many find these constant variations in the interest rate taxing and prefer to refinance the mortgage into a secure, fixed rate one.
• Consolidating multiple mortgages into one
  Paying the installments of two or more mortgages at the same time can be quite a burden for most individuals. The best solution in this case is to consolidate the multiple mortgages into one, with a fixed monthly interest rate and a longer repayment duration.
• Pay off other debts
  The proceeds from your refinanced mortgage can be used to pay off credit card bills and other similar expenses. Since mortgage interest is 100% tax deductible, you end up saving a considerable amount.
• Make cash provisions for emergency situations

You can refinance your existing mortgage to free a larger amount of cash, depending on your home equity. Since a mortgage is a secured loan, the interest applied is considerably lower than that of an unsecured loan.

Axiom Mortgage Solutions helps you decide whether it is the right time for you to refinance. The decision to refinance should be carefully evaluated to avoid any complications at a later stage. By carefully studying the status of your current mortgage and comparing it to your income and other debts, we help you pick the refinance solution that best suits your current financial status.

Axiom Mortgage Solutions offers some of the lowest and most competitive rates in the market. Regardless of your requirement, whether it is to consolidate existing mortgages or obtain a better rate, we get you the best deal possible. Our experienced mortgage professionals, who have extensive knowledge of the mortgage industry, will provide the necessary guidance that you need in making the right refinance decision