Refinance
Residential Mortgage Refinancing
Lower your rate, access equity, or consolidate debt. We compare options from 40+ lenders to find the refinance solution that puts more money back in your pocket.
Refinance at a Glance
Why Refinance
Five Reasons Homeowners Refinance
Refinancing is not just about getting a lower rate. It is a strategic financial tool that can reshape your entire debt picture.
Lower Your Interest Rate
If rates have dropped since you locked in, refinancing into a lower rate can save thousands over the life of your mortgage and reduce your monthly payment immediately.
Access Your Home Equity
Tap into the equity you have built in your home. Use the funds for investments, education, a second property, or any major expense at rates far below unsecured borrowing.
Consolidate High-Interest Debt
Roll credit cards, car loans, and lines of credit into your mortgage at a fraction of the interest rate. One payment, one due date, and significantly less interest overall.
Fund Home Renovations
Finance a kitchen remodel, basement suite, or energy-efficient upgrades by borrowing against your home. Renovations can increase your property value and offset borrowing costs.
Change Your Mortgage Terms
Switch from variable to fixed for payment certainty, shorten your amortization to pay off your home faster, or extend it to free up monthly cash flow.
Timing Matters
When Does Refinancing Make Sense?
Rate Has Dropped Significantly
A rate reduction of 0.50% or more often justifies the penalty and legal costs, especially if you have more than 2 years remaining on your term.
Penalty Is Manageable
Variable-rate penalties (3 months interest) are almost always worth paying if a better rate is available. Fixed-rate IRD penalties require careful analysis.
Renewal Is Within 120 Days
Most lenders allow an early renewal without penalty when you are within 120 days of your maturity date. This is the ideal window to lock in a new rate.
Debt Is Costing You More
If you are paying 19% on credit cards and 7% on a car loan, rolling those into a 5% mortgage saves thousands per year in interest alone.
Compare Your Options
Refinance vs. HELOC
Both let you access home equity, but they work differently. Here is how they compare side by side.
| Feature | Refinance | HELOC |
|---|---|---|
| How it works | Replace your existing mortgage with a new, larger mortgage | Revolving credit line secured against your home equity |
| Interest rate | Fixed or variable, typically lower than HELOC rates | Variable (prime + 0.50% or higher), adjusts with Bank of Canada rate |
| Maximum LTV | Up to 80% of your home's appraised value | Up to 65% standalone, or 80% combined with a mortgage |
| Payment structure | Fixed monthly payments of principal and interest | Interest-only minimum payments, flexible repayment |
| Best suited for | Large, one-time lump sum needs with structured repayment | Ongoing access to funds with flexible draw and repayment |
How It Works
The Refinance Process
Free Assessment
We review your current mortgage, property value, credit, and goals to determine whether refinancing makes financial sense after accounting for any penalties.
Document Collection
You provide income verification, your most recent mortgage statement, property tax bill, and government-issued ID. We handle the rest.
Lender Submission
We submit your file to the lenders offering the best combination of rate, terms, and flexibility for your specific situation.
Approval & Closing
Once approved, your lawyer handles the registration. Your existing mortgage is discharged and the new mortgage is put in place, typically within 2 to 4 weeks.
Be Prepared
Documents You Will Need
Government-issued photo ID (driver's licence or passport)
Most recent mortgage statement showing balance and maturity date
Recent property tax bill or assessment notice
Letter of employment and recent pay stubs (or NOA/T1 if self-employed)
Last 90 days of bank statements for the account used for mortgage payments
Signed listing of all current debts (credit cards, loans, lines of credit)
Common Questions
Mortgage Refinance FAQ
The penalty depends on your mortgage type. Variable-rate mortgages typically carry a penalty of three months of interest. Fixed-rate mortgages use the greater of three months of interest or the interest rate differential (IRD), which can be substantial if rates have fallen since you signed. We calculate your exact penalty upfront so you can weigh the cost against the long-term savings of refinancing.
In Canada, the maximum loan-to-value ratio for a refinance on an owner-occupied property is 80%. That means if your home is appraised at $800,000, you can borrow up to $640,000 minus any existing mortgage balance. The net proceeds after paying off your current mortgage are yours to use for any purpose.
Yes. All federally regulated lenders require you to qualify at the higher of your contract rate plus 2% or the Bank of Canada's qualifying rate (currently 5.25%). This applies whether you choose a fixed or variable rate. If the stress test is a barrier, we have access to alternative lenders with more flexible qualification criteria.
No. Unlike a purchase, mortgage default insurance (CMHC, Sagen, or Canada Guaranty) is not available for refinances. You must have at least 20% equity in your property, meaning your loan-to-value cannot exceed 80%. If you are close but not quite there, a home appraisal showing recent appreciation may help you qualify.
A typical residential refinance takes 2 to 4 weeks from application to funding. The timeline depends on how quickly documents are gathered, how long the appraisal takes (if required), and your lawyer's availability. We work to streamline the process and keep you informed at every stage.
It depends on the math. If the interest savings from a lower rate outweigh the prepayment penalty and legal costs, refinancing before renewal can save you money overall. If your renewal is within 120 days, most lenders allow an early renewal with no penalty, which is often the ideal scenario. We run the numbers both ways so you can make an informed decision.
Find Out How Much You Could Save
Send us your current mortgage details and we'll show you what a refinance could look like. No obligation, no cost.