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Refinancing: It's for more than your mortgage

Most Canadians equate "refinancing" with "mortgage". But did you know that there are other types of loans you can refinance? In addition to refinancing mortgage loans, you may also be able to refinance your auto loan or personal loan and secure the same benefits.

How refinancing can benefit you

  • It could lower your interest rate. Have you built good credit since taking out your loan? A positive change in your credit score may qualify you for a lower interest rate if you refinance your loan, saving you hundreds over the life of the loan.
  • It could shorten your term. If you refinance a loan and shorten the length of time you take to repay, you’ll save money by paying less interest over the life of the loan. That means more money in your pocket.
  • It could lower your payments. If you're having difficulty making your monthly loan payments, refinancing your loan and extending your loan term will lower your monthly payments. Note, however, that you may pay more in interest over the long term.
Refinancing your loan and extending your loan term will lower your monthly payments."

Refinancing step by step

1. Do your homework. Check out our online payment calculator to see how much you could save if you refinanced your loan at a lower interest rate.

2. Review the details. Call or visit your local branch to find out if you'd be charged any extra fees for the new loan, like an appraisal fee. Review the documentation from your original loan, and check to see if there are any penalties for paying off your loan early.

3. Gather the paperwork. Make sure you have all the documents you need for the refinancing, such as your vehicle title if you're refinancing an auto loan, and your original loan documents. Here's a refresher of the required documents for a personal loan and a mortgage loan.

4. Visit your local branch. Your Lending Specialist will work one-on-one with you to determine the right loan refinancing option that meets your needs and budget.

Refinancing can be a smart way to reduce your interest and monthly payments. If you think it might be right for you. visit your local Fairstone branch to discuss your options.

This article is for informational purposes only. For personalized financial advice, you should contact a qualified financial advisor.