How ‘blend and extend’ can save you money on your mortgage
What is blend and extend?
If you’ve ever financed a purchase with a fixed borrowing rate, you know that it has pros and cons. Fixed-rate financing can save you a lot of money and peace of mind if borrowing rates increase, but they can also prevent you from taking advantage of a better rate if rates decrease.
This is where blend and extend can help. It allows you to ‘blend’ your fixed mortgage rate with a lower available rate for a more favourable overall borrowing rate used to ‘extend’ your mortgage.
How can blend and extend save you money?
If you’re finding yourself locked into a fixed-rate mortgage, watching as mortgage rates hit their lowest point in decades, you may want to consider blend and extend. Speak to an advisor to see what your new mortgage rate will be and how much you can save before you make your final decision.
Borrowing against the equity of your home with blend and extend
Another reason to consider blend and extend is to access your home’s equity without having to pay a refinancing penalty. If you find yourself in need of extra cash for a purchase or a project, this can be a much better option than getting a loan. By blending and extending your mortgage, you could borrow against the equity of your home at a more favourable interest rate.