Is your mortgage working for you? Whether you are looking to Refinance and tap into your homes equity or Renew, we provide all of your options in an easy convenient manner with no obligations.
At mfactory, we guide you through a personalized mortgage journey, step by step, to help you find the perfect mortgage tailored to your unique needs.
When you get a mortgage, your agreement with the lender is set for a specific time period, known as the mortgage term. This term can last anywhere from a few months to five years or more.
When your mortgage term expires, you’ll have to either pay off the remaining balance or renew your mortgage. This is an ideal opportunity to reassess your financial situation and ensure your mortgage still meets your needs.
Refinancing might be the right choice if you’re looking to access your home’s equity for a major project, lower your interest rate, or consolidate debt to reduce overall interest costs.
You can refinance an existing mortgage or property.
When your mortgage term ends (usually 1–5 years), you don’t pay off your entire loan right away. Instead, you “renew” the remaining balance into a new term with updated rates and conditions.
Most Canadians have terms of 5 years or less. With a typical 25-year amortization, this means you’ll renew multiple times before your mortgage is fully paid off.
No. You’re free to shop around. Staying with your current lender may be easy, but comparing options with a broker often leads to better rates or terms.
It’s smart to start reviewing your options 4–6 months before your renewal date. Many lenders allow early renewal without penalty, and this gives you time to lock in rates before they rise.
If you don’t take action, most lenders will automatically roll your mortgage into a short-term open or closed term at whatever rate they offer. This is often not the best rate available.
Yes! Renewal is the perfect time to adjust your mortgage to match your life. You can:
Switch from a fixed to variable (or vice versa)
Shorten your amortization
Change your payment frequency
No — this is called a refinance. If you’ve built up equity in your home, you can access it by refinancing.
If you stay with your existing lender, often no credit check is needed. If you switch to a new lender, a full application (including credit, income, and property details) is usually required.
When rates rise, your payments may increase. Planning ahead with a broker can help you:
Lock in a rate early
Explore shorter terms until rates stabilize
Adjust amortization to keep payments affordable
Start shopping months before your term ends
Compare offers from multiple lenders (not just your bank)
Decide if you need to refinance or simply renew
Work with a broker to negotiate the best rate and terms for your goals
Refinancing means replacing your existing mortgage with a new one, either with your current lender or a new lender. It can give you access to better rates, new terms, or extra funds from your home equity.
Common reasons include:
Lowering interest rates and monthly payments
Accessing home equity for renovations, education, or investments
Consolidating high-interest debt into one lower payment
Changing mortgage terms (e.g., fixed vs variable, shorter amortization)
A home appraisal is a professional assessment of a property’s market value, conducted by a certified appraiser. Lenders use appraisals to ensure the home’s value supports the mortgage amount being requested.
In Canada, you can refinance up to 80% of your home’s appraised value (minus your current mortgage balance).
Yes, but breaking your mortgage early usually comes with a penalty (3 months’ interest or an Interest Rate Differential, depending on your mortgage type). Sometimes, the long-term savings still outweigh the penalty.
Renewal → Happens at the end of your mortgage term, with no penalty if you stay with your lender.
Refinancing → Can happen anytime, and lets you borrow more money, consolidate debt, or change terms — but may involve penalties if done mid-term.
Yes. This is called equity take-out refinancing. You can borrow against the value of your home and use the funds for things like renovations, investments, education, or paying off higher-interest debt.
If you don’t want to fully refinance, other options include:
Home equity line of credit (HELOC) → Flexible borrowing secured by your home.
Second mortgage → Another loan on top of your existing one.
Blended rate mortgage → Some lenders let you “blend” your old rate with a new one instead of breaking your term.
Yes, lenders will do a credit check and reassess your income and property value. Refinancing can affect your credit temporarily, but managing payments responsibly will build it back.
When interest rates are lower than your current rate
When you need access to equity for major expenses
When consolidating debt will save you money
Review your goals (lower payments, debt consolidation, cash out)
Compare costs vs benefits (including penalties)
Explore alternatives like HELOCs if refinancing isn’t the best fit
Work with a broker to shop multiple lenders and structure the refinance for maximum flexibility and savings
Getting Pre-Approved is as easy as 1-2-3 with our online application
