In light of BMO reintroducing last year’s 2.99% mortgage product, and the Bank of Canada once again leaving the overnight lending rate at 1.00 per cent, it’s safe to assume that mortgage rates will remain low for at least the next month or two. If you’ve been thinking about consolidating some debt or pulling equity out of your home, now might be a great time to refinance your mortgage to do so.
But how much does it cost to refinance? Depending on if you have a fixed or variable rate mortgage, you’re looking at paying either three months’ interest or the interest rate differential. The penalty fee, also known as a prepayment charge, can cost thousands of dollars – and the cost may not always outweigh the potential savings.
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