Mortgage Refinancing in Canada
Access your home equity, lower your rate, or consolidate debt
Refinancing your mortgage can help you achieve your financial goals, whether it's reducing your monthly payments, accessing funds for major expenses, or consolidating high-interest debt. Lenderoo shops 40+ lenders and matches you with a top mortgage professional to find the best refinancing solution for your needs - free, and on your side.
Why Focus on Refinancing?
Take advantage of lower market rates to reduce your monthly payments and save thousands over the life of your mortgage.
Tap into your home's equity for renovations, investments, education, or other major expenses at mortgage rates.
Roll credit cards, personal loans, and other debts into your mortgage to simplify payments and reduce interest costs.
Finance home renovations, education costs, or business investments using your home equity at competitive rates.
Switch from variable to fixed rates, adjust your amortization period, or modify other mortgage terms to better suit your needs.
Use refinanced funds for strategic renovations that increase your property value and build long-term wealth.
Your Refinancing Timeline
Assess Your Situation
Review your current mortgage, home value, and financial goals to determine if refinancing makes sense.
Get Home Appraisal
Professional appraisal determines your home's current market value and available equity.
Shop for Rates
Compare rates and terms from multiple lenders to find the best refinancing package.
Submit Application
Provide required documentation and complete the formal application with your chosen lender.
Final Approval
Lender reviews your application, verifies documentation, and issues final mortgage approval.
Close and Fund
Sign final documents, pay closing costs, and receive your equity funds if applicable.
Refinancing vs. Renewal: What's the Difference?
What It Is
Continuing your existing mortgage with the same or different lender at the end of your term.
When It Happens
At the end of your mortgage term (typically every 1-5 years).
Costs
Typically no penalties or legal fees when renewing at term maturity.
Loan Amount
Same mortgage balance; cannot access additional equity.
Best For
Homeowners satisfied with their current mortgage who just need a new rate for the next term.
What It Is
Replacing your existing mortgage with a new one, often for a larger amount or better terms.
When It Happens
Can happen anytime, even mid-term (though penalties may apply).
Costs
May include prepayment penalties, legal fees, appraisal costs, and title insurance.
Loan Amount
Can access up to 80% of home value, allowing you to tap into equity.
Best For
Accessing equity, consolidating debt, lowering rates significantly, or changing mortgage terms.
Costs & Considerations
While refinancing can offer significant benefits, it's important to understand the costs involved:
Typically $300-$500 to determine your home's current market value.
Usually $500-$1,500 for a lawyer to review documents and register the new mortgage.
Fees for breaking your current mortgage early, calculated using either 3 months' interest or the Interest Rate Differential (IRD).
Around $200-$400 to protect against title defects and ensure clear ownership.
Lenderoo helps you calculate whether the savings from refinancing outweigh these costs. Our mortgage experts will provide a detailed cost-benefit analysis, ensuring you make an informed decision that truly benefits your financial situation.
Is Refinancing Right for You?
Refinancing may be a good option if you're in one of these situations:
You have at least 20% equity in your home – This is typically required to refinance and access additional funds.
Interest rates have dropped significantly – If current rates are lower than your existing rate, you could save substantially.
You have high-interest debt to consolidate – Credit cards, personal loans, or car loans at higher rates can be rolled into your mortgage.
You need funds for renovations or investments – Home improvements can increase your property value, making this a strategic move.
Your credit score has improved – Better credit may qualify you for lower rates and better terms than when you first obtained your mortgage.
You want to change your mortgage terms – Whether switching from variable to fixed, adjusting your amortization, or removing a co-borrower.
Questions & Answers
Frequently Asked Questions
Everything you need to know about refinancing your mortgage in Canada, from equity requirements and costs to prepayment penalties and timelines.
Ready to Explore Refinancing?
Get a free, no-obligation quote and discover how much you could save or access through refinancing. Our mortgage experts will help you navigate the process and find the best solution for your financial goals.