Weighing your financing options

Mortgage lenders and finance companies alike tend to use the terms “remortgage” and “refinance” in the same context.

To be specific, remortgaging refers to taking out a loan at a lower interest rate, resulting in a reduction of mortgage repayments and possibly shortening the time it takes to pay off the entire loan.

Refinancing, in contrast, is offered by finance companies in order to allow you to arrange for a loan at a lower interest rate than your existing mortgage so that your equity in your property may be released for home improvement or debt consolidation purposes.