Refinance & Renewal
Your mortgage should still fit the life you have now.
Access equity, consolidate higher-interest debt, fund a renovation, or simply stop auto-signing your renewal letter. A refinance is a decision worth running the numbers on.
Reasons people refinance
Consolidate debt
Credit cards and lines of credit at high rates can often be folded into your mortgage at a much lower one — one payment instead of five.
Access equity
Fund a renovation, a down payment on a second property, tuition, or a business need using the equity you've already built.
Renegotiate at renewal
Your lender's renewal offer is a starting point, not the market. Comparing before you sign is the cheapest hour you'll spend.
Change the structure
Shorten your amortization, switch fixed to variable, split a mortgage, or remove a co-signer after a life change.
Take up an opportunity
An investment, a business purchase, a down payment for a child. Borrowing to invest has tax consequences — talk to your accountant before we structure it.
Ease monthly cash flow
Re-spreading the balance over a longer amortization lowers the payment. It also adds interest over the life of the mortgage — I'll show you how much before you choose it.
Refinancing and renewing are not the same thing.
People use the words interchangeably, and it costs them money. The difference decides whether a prepayment charge is even on the table.
Renewing
Your term ends and you sign on for another one. You can renegotiate your rate and term, and you don't re-apply from scratch.
Switching lenders at renewal normally carries no prepayment charge — which is why the 120 days before renewal are the cheapest window you get.
Refinancing
You pay out your existing mortgage and negotiate a new agreement — usually to access equity or fold in higher-interest debt.
Done mid-term, a prepayment charge usually applies, along with costs for mortgage registration and a property valuation.
How much equity you can actually use
Appraised value
$500,000
80% of value
$400,000
Less your balance
−$300,000
Available to you
$100,000
Illustration only. A refinance is generally limited to 80% of appraised value, and approval still depends on your income, credit and the lender's policy.
What you gain
Access to equity you've already built, at mortgage rates rather than credit-card rates.
One payment instead of several, and a lower blended interest cost.
A chance to reset your rate, term or amortization to match your plans.
What to weigh against it
Borrowing more can stretch out how long you'll be paying your mortgage.
A lower rate on a larger balance isn't automatically less interest overall.
Prepayment charge, appraisal and registration costs come off the top of any savings.
Add up the cost before you count the savings.
A refinance is only worth doing when the total cost of the move is smaller than what you save. These are the line items we price out first.
Prepayment charge
Applies when you break a term early. Usually the largest single cost, and the one we confirm with your lender in writing.
Property valuation
An appraisal establishes the value your available equity is calculated from. Some lenders cover it, some don't.
Legal & registration
The new mortgage has to be registered on title, and the old one discharged. Lawyer or title company fees sit here.
Lender admin
Discharge and processing fees vary by lender. Small individually, worth knowing before they appear on a statement.
Some lenders cover part of these costs to win your business — that's part of what I negotiate. If the numbers don't clear, waiting for renewal is usually the better move.
The honest math comes first.
Refinancing mid-term can trigger a prepayment penalty, and breaking early isn't always worth it. Sometimes the answer is to wait for renewal — I'll tell you when that's the case.
You get the total cost of the move against the total savings, in writing, before you decide anything.
What we check
Current balance and rate, remaining term, penalty estimate, property value, and total interest under each option.
How much equity you can use
Refinances are generally available up to 80% of your home's appraised value, depending on the lender and your file.
Timing your renewal
Start 120 days out. That's when you can shop and hold a rate without paying to break your existing term.
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Common questions
What will breaking my mortgage cost?+
On a variable mortgage it's usually three months' interest. On a fixed mortgage it's typically the greater of that or an interest rate differential, which can be significant. We get the exact figure from your lender before deciding.
How much can I borrow against my home?+
Generally up to 80% of appraised value on a refinance, minus your current balance. Qualifying still depends on income and credit.
Do I need a new appraisal?+
Usually yes for a refinance. Some lenders accept automated valuations on straightforward files, and some cover the cost — I'll confirm before you spend anything.
How often can I refinance?+
There's no rule limiting how often, though individual lenders set their own. The practical limit is your credit: every application pulls your report, and repeated pulls can lower your score — which is one of the things the next lender is judging. Refinance when there's a reason that clears the cost, not on a schedule.
How do I know what my home is worth?+
A realtor can give you an opinion based on recent comparable sales in your neighbourhood, and online estimates are a rough starting point. For a refinance, the number that counts is the lender's own appraisal — so treat everything before that as an estimate.
Rates dropped. Should I refinance now?+
It's a good reason to look, especially if you also need funds. But a lower rate on a larger balance isn't automatically less interest, and the penalty plus closing costs come off the top. We compare total interest under each option over the time you actually plan to stay in the home.
Should I just sign my renewal letter?+
Only after comparing. Renewal offers are often above what's available elsewhere, and switching at renewal typically carries no penalty. A short review can be worth thousands over the term.