Should I refinance my mortgage in 2024?

Refinancing can be beneficial if:

1. Interest Rate Savings

• Your current rate is significantly higher than available rates
• A rule of thumb: refinance if you can reduce your rate by at least 0.5-1%
• Calculate the break-even point (closing costs ÷ monthly savings)

2. Debt Consolidation

• Rolling high-interest debt (credit cards, lines of credit) into your mortgage
• This can reduce overall interest costs significantly
• Be careful not to accumulate new debt

3. Accessing Home Equity

• Home renovations that add value
• Investment opportunities
• Education costs

• Mortgage penalty: Can be 3 months' interest or the Interest Rate Differential (IRD), whichever is greater
• Appraisal fees: $300-$500
• Legal fees: $800-$1,500
• Discharge fee: $200-$400

• If your penalty is very high (especially with fixed-rate mortgages)
• If you're close to your renewal date
• If you plan to move within 2-3 years

Contact a mortgage broker to compare options across multiple lenders. They can calculate whether refinancing makes financial sense for your specific situation.