Mortgage Refinancing - Use the equity in your home to create more financial flexibility
Whether you want to consolidate debt, lower your monthly payments, access funds for renovations, or simply improve your overall mortgage strategy, refinancing your mortgage could help you reach your goals faster.
What is mortgage refinancing?
Mortgage refinancing means replacing your current mortgage with a new one that better fits your current needs and financial goals.
Many homeowners refinance to:
- consolidate high-interest debt
- lower monthly payments
- access equity from their home
- renovate or complete home improvements
- pay for large expenses
- restructure their finances
- switch from a variable to fixed rate (or vice versa)
If your financial situation, goals, or expenses have changed since you first got your mortgage, refinancing can be a smart way to regain flexibility and improve cash flow.
What our clients are saying…
“They made refinancing our mortgage so much easier than we expected. Katie explained every option clearly and helped us consolidate debt into one manageable payment.” ~Jeremy K.
“We used our refinance to renovate our home and lower our monthly payments at the same time. The whole process was smooth and stress-free.” ~ Pam N.
“Brie took the time to actually understand our financial goals instead of just pushing the lowest rate. We felt supported through the entire process.” ~ Rebecca M.
Why refinance your mortgage?
Consolidate high-interest debt
One of the most common reasons homeowners refinance is to consolidate higher-interest debt like credit cards, personal loans, or lines of credit into their mortgage.
Because mortgage rates are often significantly lower than unsecured debt rates, refinancing may help reduce your overall monthly payments and simplify your finances into one manageable payment.
Access your home equity
As your home value increases and your mortgage balance decreases, you build equity in your home. Refinancing may allow you to access a portion of that equity for:
- renovations
- investments
- education expenses
- emergency funds
- large purchases
- other financial goals
Lower your monthly payments
Refinancing may help reduce your monthly payments by:
- securing a lower interest rate
- extending your amortization
- consolidating other debts into one payment
Restructure your mortgage
Your current mortgage may no longer fit your life. Refinancing gives you the opportunity to:
- change your mortgage term
- switch between fixed and variable rates
- adjust your payment frequency
- improve mortgage flexibility and prepayment options
How much equity can you access?
In Canada, most homeowners can refinance up to 80% of their home’s appraised value, depending on qualification requirements.
Example:
If your home is worth $700,000 and your remaining mortgage balance is $400,000, you may be able to refinance and access a portion of the difference in equity. 80% of $700,000 is $560,000; meaning you have approximately $160,000 in equity available.
Every situation is different, and we can help you determine what options may be available to you.
Is refinancing worth it?
Refinancing can create major financial benefits — but it’s important to review the full picture.
We’ll help you look at:
- potential monthly savings
- interest costs over time
- mortgage penalties
- debt repayment strategy
- cash flow improvements
- long-term financial goals
Sometimes refinancing makes immediate sense. Other times, there may be better options available. Our goal is to help you understand all of your choices so you can make the decision that works best for you.
Mortgage refinance FAQs
What is the difference between refinancing and renewing?
A mortgage renewal keeps your existing mortgage balance but starts a new term and interest rate. Refinancing changes your mortgage structure and may allow you to increase your mortgage amount to access equity or consolidate debt.
How much can I refinance my mortgage for?
Most Canadian lenders allow homeowners to refinance up to 80% of their home’s appraised value, subject to qualification requirements.
Can I refinance to consolidate debt?
Yes. Many homeowners refinance to consolidate higher-interest debt such as credit cards, personal loans, and lines of credit into one lower-interest mortgage payment.
Will refinancing lower my monthly payments?
It can. Depending on your situation, refinancing may reduce your payments by lowering your interest rate, extending your amortization, or consolidating other debts.
Do I need to qualify to refinance?
Yes. Refinancing requires a new mortgage qualification process, including income, credit, and property review.
Are there penalties to refinance my mortgage early?
Possibly. If you refinance before your current mortgage term ends, your lender may charge a mortgage penalty. We’ll help you review those costs and determine whether refinancing still makes financial sense.
How long does refinancing take?
Most refinance transactions take approximately 2–4 weeks depending on the lender, documentation, and whether legal work or appraisals are required.
Does a refinance cost anything to me?
Usually, yes. With a refinance there is often an appraisal required to confirm your current value and some legal fees to register the new mortgage. In Alberta, we recommend budgeting approximately $1,500 for both of these items. If you have enough equity, these costs can be rolled into your new mortgage.
Learn more about refinancing your mortgage
As mortgage policies change, we are always updating our video library with fresh content. Have a peek at some of our videos that focus on refinancing below!
Mortgage Refinancing
1:59
1:51
1:22
1:46
2:25
