JASON HEATH | Special to the Financial Post  | Published 

Canadians have many reasons for refinancing, but strategic refinancing can be a good financial planning tool. There are three main refinancing strategies: interest savings, cash flow management and tax planning.

Globally, refinancing has taken on a bit of negative undertone due to the refinancing of Greek and other European sovereign debt, which might be diplomatically described as debt restructuring or more appropriately described as debt default.

First and foremost, interest savings can result from a refinancing of debt and this is perhaps the most common strategy for most Canadians. An easy way to generate interest savings is to refinance a secured debt, like a mortgage secured by a home, by increasing that debt and using the proceeds to pay off unsecured debt, like a credit card, that is at a higher interest rate. read full article