How Refinancing Helped One Family Save Over $600 a Month

Refinancing your mortgage might sound like a hassle, but it can be a powerful way to improve your financial situation—whether it’s lowering your monthly payments, consolidating debt, or accessing equity for other goals.

Let me share a real example of how refinancing made a big difference for one of my clients.

The Situation

This family had a mortgage balance of $208,000, but like many Canadians, they also carried additional high-interest debt:

Loan #1: $19,000 balance
Loan #2: $15,000 balance

Between their mortgage and the two loans, their total monthly payments were $2,131. They were making their payments, but the high-interest loans were eating into their cash flow every month.

The Solution

After reviewing their situation, we decided to refinance their mortgage. We rolled their mortgage and both loans into one new mortgage of $250,000, giving them:

A lower overall interest rate compared to their loans
One single monthly payment instead of three separate ones

Here’s how the numbers looked after refinancing:

New Monthly Mortgage Payment: $1,525
Old Total Monthly Payments: $2,131
Monthly Savings: $606

That’s over $7,200 saved per year, and the extra breathing room made a huge difference for them. They had this extra money to spend on other things, like a vacation, sports for the kids, or even use it to make prepayments on their mortgage, drastically reducing the amortization and interest paid over time.

Why Refinancing Works

Mortgage interest rates are typically much lower than rates on personal loans or credit cards. By refinancing, you can:

Reduce your overall interest costs
Simplify your finances with just one payment
Free up cash flow for other priorities—whether that’s savings, home improvements, or enjoying life a little more

Every situation is different, but if you’re carrying high-interest debt or want to see if refinancing makes sense, I’d be happy to run the numbers for you.

Call or text (902) 402-9779, or visit www.gregmatthews.tmgbroker.com/apply.aspx to fill out a five-minute pre-approval form.