If you are looking to tap into your home equity
Last but certainly not least, a good reason to think about refinancing with the lower interest rates right now is to finance a large purchase via your home’s equity. Unlike other options out there, a refinance with cashback can provide an excellent opportunity for you to pay for your son or daughter’s college expenses or finally do that home renovation you have been putting off. Locking this increase to the mortgage by tapping into the home equity may be a great option, especially if you have already planned a more extensive renovation in the coming years.
However, although it is nice to have all that money in the bank, do be forewarned those renovations are an expensive endeavour. Currently, with inflation and other factors such as material pricing, renovations are between 5 and 10 per cent more costly than pre-pandemic. This can mean that the once $50,000 to $60,000 bathroom reno is now pushing $75,000. So, no matter what you have in mind, you will need to be mindful of the actual cost and see if that is worth paying the penalties to get out of your mortgage a little earlier than expected.