Unlock Your Home Equity in Ontario
Access the equity you've built, secure better rates, or consolidate debt. Refinancing options from 50+ lenders tailored to your goals.
What Is Mortgage Refinancing?
Mortgage refinancing replaces your existing mortgage with a new one, typically with different terms, a new interest rate, or a higher loan amount that allows you to access your home's equity. For Ontario homeowners who have built equity through property appreciation or mortgage payments, refinancing can be a powerful financial tool.
Whether you want to take advantage of lower interest rates, access cash for home improvements, consolidate high-interest debt, or simply restructure your mortgage to better fit your current financial situation, refinancing offers flexibility that your original mortgage may not provide.
As a licensed mortgage agent with access to over 50 lenders, I help Ontario homeowners navigate refinancing options to find the solution that makes the most financial sense. Not every refinance is a good idea—I'll provide an honest assessment of whether the benefits outweigh the costs in your specific situation.
Top Reasons to Refinance
Lower Your Interest Rate
If rates have dropped since you got your mortgage, or if your credit has improved, refinancing could secure you a lower rate and reduce your monthly payments.
Access Home Equity
Turn your home equity into cash for major expenses like renovations, education, investments, or other financial needs.
Consolidate Debt
Roll high-interest credit cards, car loans, and other debts into your mortgage at a much lower rate, potentially saving thousands in interest.
Fund Renovations
Use your equity to finance home improvements that can increase your property value and quality of life.
Who Benefits Most from Refinancing?
Homeowners with Significant Equity
If your home has appreciated in value or you've paid down substantial principal, you have equity that can be accessed.
Those with High-Interest Debt
Credit card rates of 19-29% can be consolidated into mortgage rates around 5-7%, saving significant interest.
Homeowners at Mortgage Renewal
Renewal time is the ideal opportunity to refinance without prepayment penalties.
Those Whose Financial Situation Has Improved
Better income or improved credit may qualify you for significantly better rates than your current mortgage.
Property Investors
Access equity from one property to fund down payments on investment properties.
How Refinancing Works in Ontario
When you refinance, you're essentially taking out a new mortgage to replace your existing one. The new mortgage pays off the old one, and any additional funds (if you're accessing equity) are provided to you.
Key Points to Understand:
- Maximum LTV (Loan-to-Value): You can refinance up to 80% of your home's appraised value with traditional lenders, or higher with alternative lenders.
- Qualification: You'll need to re-qualify for the new mortgage, including passing the stress test at the higher of your contract rate +2% or the benchmark rate.
- Costs: Include legal fees, appraisal, potential prepayment penalty, and discharge fees. These must be factored into your decision.
- Break-Even Analysis: I calculate how long it takes for the refinancing benefits to exceed the costs, helping you make an informed decision.
Costs & Considerations
Typical Costs
- • Legal fees: $800-$1,500
- • Appraisal: $300-$500
- • Discharge fee: $200-$350
- • Title insurance: $200-$400
- • Prepayment penalty: Varies
Prepayment Penalties
- • Variable rate: Usually 3 months' interest
- • Fixed rate: Greater of 3 months' interest or IRD
- • IRD can be substantial mid-term
- • Request penalty quote from lender
- • Time refinance with renewal if possible
The Refinancing Process
Initial Consultation
30 minWe review your current mortgage, home value, and financial goals to determine if refinancing makes sense for your situation.
Cost-Benefit Analysis
1-2 daysI calculate all refinancing costs including penalties, fees, and new terms to ensure the numbers work in your favor.
Application & Documentation
2-3 daysSubmit your application with required documents. We shop your file to multiple lenders for the best rates and terms.
Property Appraisal
3-7 daysThe lender orders an appraisal to confirm your home's current market value, which determines your maximum refinance amount.
Approval & Conditions
5-10 daysReceive lender approval and satisfy any remaining conditions. We coordinate with your lawyer for closing preparation.
Closing & Funding
Closing daySign new mortgage documents with your lawyer. Funds are disbursed to pay out your existing mortgage and provide any equity withdrawal.
Real Refinancing Scenarios
Debt Consolidation Success
David and Lisa had a $400,000 mortgage on their $650,000 Hamilton home, plus $45,000 in credit card debt at 19.99% APR. By refinancing to a $480,000 mortgage at 5.5%, they paid off all credit cards. Their monthly debt payments dropped by $800, and they're now debt-free except for their mortgage.
Monthly savings: $800 | Interest savings over 5 years: $35,000+
Home Renovation Funding
The Chen family wanted to add a basement apartment to their Toronto home for rental income. Their home was worth $1.1M with a $550,000 mortgage. They refinanced to $780,000, accessing $200,000 for the renovation (after costs). The completed apartment now generates $2,200/month in rental income.
Investment: $200,000 | New monthly income: $2,200 | Property value increase: $150,000+
Rate Improvement at Renewal
Maria's mortgage was coming up for renewal. Her bank offered 6.1%, but by refinancing through a different lender, she secured 5.4%. On her $350,000 mortgage, this saves her $2,400 per year in interest—$12,000 over her 5-year term.
Rate reduction: 0.7% | Annual savings: $2,400 | 5-year savings: $12,000
* These scenarios are illustrative examples. Actual results vary based on individual circumstances, property values, and lender requirements.
Frequently Asked Questions
Explore Your Refinancing Options
Get a free analysis of your refinancing potential. No obligation, no pressure.
Related Mortgage Solutions
Ready to Get Started?
Take the first step toward your mortgage goals. Apply online, call us, or book a free consultation.
Mortgage Agent Level 1 | Dominion Lending Centres | License #M23005941
Information is general in nature and may vary by lender and borrower profile. Refinancing involves costs that should be weighed against potential benefits. Contact us for personalized guidance based on your specific situation.