When deciding to refinance your mortgage, there's more to consider than just the interest rate. If you are still years away from renewal, breaking your mortgage can carry a hefty fee.
If you are consolidating other higher-interest debt, however, or planning to use the money to pay for renovations, a refinance might make sense.
Laura Parsons, a mortgage expert at the Bank of Montreal, says borrowers need to take a look at all their financial needs when making the decision to refinance their mortgages.
"It is bigger than just deciding you're going to refinance. It is really taking a complete checkup on your current finances and understanding what rates you have out there," Ms. Parsons says.
Wondering whether you should refinance or lock in your rate? Ms. Parsons was here for a discussion with Globe and Mail readers. For a transcript of the conversation, click on the grey box below. Mobile users can read the chat by clicking here.