Whether you’re looking to tap into your home equity, consolidate debt at a lower interest rate, or extend your amortization period, refinancing can be the smart choice.
Mortgage refinancing involves replacing your current mortgage with a new one—often with different terms, rate, amortization and loan amount. It’s a financial strategy that can help you lower your interest rate, consolidate debt, or tap into your home’s equity for large purchases, renovations or to consolidate debt into one manageable payment with a lower interest rate.
However, before moving forward, it’s important to weigh a few key considerations.
Can reduce your monthly payments and total interest over time.
Allows you to combine high-interest debts into one lower-rate mortgage.
Tap into your home’s equity to fund renovations, education, or other major expenses.
Adjust the amortization period to lower your payments.
Lower payments may free up money for other financial goals.
You may face fees for breaking your current mortgage early.
Appraisal, legal, and administrative fees can add up.
You must meet lender criteria, including income, credit score, and loan-to-value ratio.
Extending your amortization period can lower payments but increase interest over time.
Starting a new mortgage term may delay your path to being mortgage-free.
Before moving forward, it’s important to weigh a few key considerations.
In Canada, refinancing your mortgage means replacing your current loan with a new one under different terms—and you’ll need to meet certain eligibility requirements to qualify.
One key factor lenders look at is your loan-to-value (LTV) ratio. This is calculated by dividing the total amount you owe on your mortgage and any other loans secured by your home by its appraised value. If your LTV ratio is 80% or less, you may be eligible to refinance. Keep in mind that prepayment charges may apply in some situations.
Up to 80% of the property value.
Inclusive of prepayment penalty/fee if applicable.
Registration/Fees for the new mortgage.
Refinancing is a great way to consolidate debts and access funds with the lowest cost of borrowing. Access up to 80% of your home's equity for projects.
A HELOC will allow access to up to 80% of your home's equity but through a line of credit. This is a great way to access funds when you need them.
A Reverse Mortgage lets Canadians 55 and over remain in their home and access up to 55% of the home’s value tax-free.
Your refinance journey begins here. The first step is completing our online mortgage form.
This form gives your agent the essential details to personalize your mortgage refinance options.
Based on the information you provided in step 1, your agent will prepare a customized checklist of required documents to ensure all your mortgage options are available.
After submitting the necessary documents, your agent will review and provide the top refinance options and recommendations.
During this step, your agent will prepare the mortgage commitment, reviewing the mortgage amount, terms, payments, prepayment privileges, property taxes and answer any questions you may have.
The lender typically orders a new appraisal to determine the current market value of your home as a basis for the new mortgage amount.
Your current lender will issue a detailed payout statement. The information your lender sent over is reviewed verifying that the information on your home’s title matches the paperwork submitted to your new lender.
This process is facilitated by a mortgage loan closing service (FCT, FNF) or lawyer.
You’ll meet with a signing agent or lawyer to review and sign the final documents just prior to the closing date. Here the funds are disbursed to payout the existing mortgage and debts or expenses if consolidating. The remaining funds are directed to you.
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
