We all know the market is changing, but just because the market is changing, though, doesn't mean that there isn't amazing opportunity in the world of real estate. And this video today is all about the reasons why you might consider refinancing your mortgage as we start to see these changes accelerate. This video is especially for anybody that has bought a home in the recent past or anybody that has bought a home in the last five years. If that sounds like you and it sounds like a good idea, come join me for this trip.
All right, so as I had addressed previously, the market is definitely changing. I think we have seen the big run up in prices that we expected to eventually come to an end, starting to come to an end a couple of weeks ago. If you maybe bought a home in the past and you maybe got in a little bit over your head, or maybe you're finding yourself struggling with payments or for any reason you just want to try and free up some money, refinancing your mortgage might be an incredible option for you. We all know that life is getting incredibly expensive with the inflation just raging, seemingly out of control.
Another reason why mortgage rates are likely to go up in the very near future. We already know that they've already started. Refinancing your mortgage is an incredible way to consolidate any of your debt. So for any of you out there that maybe have car loans or you owe money for a business, or you owe money, maybe because you just got married, refinancing your mortgage is a good way to tie in all of those debts into one and put them as part of your mortgage to now have them as part of a lower mortgage rate. The mortgage rate that you would pay on this refinance portion is certainly going to be lower than any of that credit card debt, card debt, or other debt that you might have on a line of credit or elsewhere.
So it definitely makes sense to refinance if you've got a lot of outstanding debt consolidated in. You could also consider refinancing if you were interested in moving into a longer term loan, you might have signed a variable rate mortgage. Or you might have done a 5-year fixed mortgage in the last recent past or last few years, and you might consider taking advantage of the longer term rates that are out there. There are still lots of banks that offer mortgage terms that are way longer than just the simple five year mortgage.
And as the bank of Canada has been very forthcoming about, which we've talked about many times and lots of our videos, you might choose to lock into an interest rate for a longer period of time to take advantage of today's ultra low rates. With inflation currently on fire, the bank of Canada is going to have to continue to raise rates to tame that inflation and save us from all going broke. This is one of the reasons why a longer term mortgage might make sense for your financial situation, especially if you don't like the fluctuation of a variable rate mortgage. Because guess what folks? Those are going to continue to go up.
You might also choose to refinance if you have an interest rate that is significantly higher than what the rates are today. So if you got into your mortgage maybe back in 2019 or 2018, your rates are probably significantly higher than where they are today. And if you have not been paying attention to refinancing, you want to make a call to your mortgage provider immediately. You could also consider refinancing if you wanted to lower your monthly payments, so you want to free up some extra cash to put towards anything, including savings. You could certainly do that if you renegotiate your mortgage now.
One tip that's really great is if you did choose to refinance and you brought down your monthly payment, but maybe consider still making the same monthly payment each month. And that way, if you ever did need that extra cash, you have the ability to free it up now rather than having to be committed to giving to it each and every time you do a mortgage payment. There are so many great reasons to consider refinancing your home. I hope this quick video gave you a few good ideas and some options that you might be able to consider when it comes time to consider refinancing. Now.
Of course, one of the reasons I didn't mention at all is you might actually be considering moving, which in that case you wouldn't want to refinance. You would want to see what getting into a new mortgage might look like on your new property. So before you sign any paperwork with your mortgage provider, you would want to have that discussion with your real estate professional or ideally me. Before you do anything. For those of you that are considering selling, be sure to take advantage of our free PDF, linked in the description below, all about ways that you can add up to 5% on your home over a weekend. These are simple strategies that we research to the 9's to help our home sellers maximize their sale price.
These are 4 things you can do in a weekend, and I would never forget about my home buyers out there. We've got one for you too. Called 4 secrets to finding off market properties and how to stop competing on other properties on the MLS. We know the market is busy. We know it's challenging to find a home right now.
Still is challenging even though the market is starting to slow down. So this is a great way to find your dream home all while not competing against other home buyers out there against underpriced properties. So make sure you pick that up too again in the description below. I want to thank you again for watching. I'm Darin with the Germyn group where we know you've only got one chance to either buy or sell your next home. So we're here to help you get it right.