Current Mortgage

Current Home Value ($)

Current Mortgage Balance ($)

Current Interest Rate (%)

%/yr

0%15%

Remaining Term (Months)

Current Monthly Payment ($)

Prepayment Penalty ($)

New Proposed Terms

New Interest Rate (%)

%/yr

0%10%

New Amortization (Years)

yrs

Closing / Refinancing Costs ($)

Lender Fees ($)

Your Refinance Summary

—

New Monthly Payment

—

Monthly Savings

—

per month

Annual Savings

—

per year

Total Cost to Refinance

—

all-in fees

Break-Even Point

—

months to recoup costs

Lifetime Interest Saved

—

over new loan term

Before vs. After Comparison

	Current Mortgage	After Refinancing
Interest Rate	—	—
Monthly Payment	—	—
Remaining Principal	—	—
Loan Term Remaining	—	—
Total Interest (remaining)	—	—

Break-Even Timeline —

Estimates only — not a commitment to lend. Actual rates, fees, and savings will vary. Speak with a licensed mortgage professional before making refinancing decisions.

Current Equity

—

Remaining Debt

—

LTV Ratio

—

Interest Saved

—

When Should You Refinance?

Refinancing can be a powerful financial tool — but timing matters. A general rule of thumb is to refinance when you can reduce your interest rate by at least 0.5% to 1%, and when you plan to stay in your home long enough to pass the break-even point.

In Canada, you may also need to qualify under the federal mortgage stress test at the higher of your new contract rate plus 2% or 5.25%, even when switching lenders. Factor in any prepayment penalties from your current lender — these can range from 3 months' interest on a variable-rate mortgage to an Interest Rate Differential (IRD) penalty on a fixed-rate mortgage.

Rate Drop Opportunity

When rates fall significantly from your current locked rate, refinancing can save tens of thousands over your amortization.

Tap into Equity

Refinancing lets you access built-up equity for renovations, debt consolidation, or investment at lower mortgage rates.

Shorten Your Term

If your income has increased, refinancing to a shorter amortization can save significant interest over the life of your loan.

Consolidate Debt

Roll higher-interest debt (credit cards, lines of credit) into your mortgage at a far lower rate to improve cash flow.

Our mortgage specialists can review your current mortgage, run lender comparisons, and help you find the best rate before you commit. No obligation — just clarity.

(905) 334-3560

Mortgage Refinance FAQs

Mortgage refinancing means replacing your existing mortgage with a new one — typically to secure a lower interest rate, change the loan term, consolidate debts, or access home equity. In Canada, refinancing allows homeowners to borrow up to 80% of their home's current market value. The new mortgage pays off the old one, and the remaining equity can be used for renovations, investments, or debt consolidation.

Most Canadian lenders require that you maintain at least 20% equity in your property after refinancing. This means the maximum refinance amount is typically 80% of the home's appraised value. For example, if your home is worth $800,000, the maximum mortgage after refinancing would generally be $640,000.

Refinancing typically requires income verification and financial documentation similar to a new mortgage application. Lenders usually request recent pay stubs, employment letters, tax returns or T1 Generals, Notices of Assessment, bank statements, and a property appraisal. If refinancing for debt consolidation, statements for the debts being paid off may also be required.

Refinancing usually causes only a small, temporary impact on your credit score due to the lender performing a credit inquiry. However, if refinancing is used to consolidate high-interest debts like credit cards or personal loans, it can actually improve your credit profile over time by lowering your overall debt utilization and monthly obligations.

Refinancing often makes sense when interest rates drop significantly, when homeowners want to consolidate higher-interest debt, or when they need to access equity for renovations or investments. The decision should also consider potential penalties for breaking your current mortgage early, legal costs, and appraisal fees. In many cases, the long-term interest savings outweigh these upfront costs.

The refinancing process typically takes 2–4 weeks depending on the lender, appraisal timeline, and document verification. The process includes submitting an application, verifying income and credit, ordering a property appraisal, receiving mortgage approval, and completing legal paperwork to register the new mortgage.

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