Whether you’re looking to lower your monthly payments, tap into your home equity, or lock in a better rate—refinancing your mortgage can be a powerful financial move. But just like choosing your first mortgage, it helps to understand the process and know what to expect.
Here’s what Canadians need to know about mortgage refinancing—and how to decide if it’s the right time to make a change.
What Is Mortgage Refinancing?
Refinancing means replacing your current mortgage with a new one, usually from the same or a different lender. Your new mortgage pays off the existing one—and you move forward with updated terms that better fit your current needs.
Why Refinance?
There are a few common reasons Canadian homeowners choose to refinance:
- 🔽 Lower your interest rate and reduce monthly payments
- 📅 Extend or shorten your amortization to adjust your cash flow
- 💸 Access home equity for renovations, tuition, debt consolidation, or other big expenses
- 🔄 Switch from a variable to a fixed rate (or vice versa)
- 🧾 Consolidate debt into one affordable payment
Sometimes it’s not about saving money immediately—but about gaining flexibility or improving your long-term financial picture.
When Is the Right Time to Refinance?
Every situation is unique, but you may want to explore refinancing if:
- Interest rates have dropped significantly since you signed your current mortgage
- You’ve built up equity and want to put it to use
- Your financial goals have changed
- Your current mortgage is up for renewal soon
- You want to consolidate high-interest debt into one manageable monthly payment
Keep in mind: If you’re breaking a fixed-rate mortgage before the end of your term, you’ll likely face a prepayment penalty—so it’s important to calculate whether refinancing still saves you money.
What Does the Refinancing Process Look Like?
Refinancing is very similar to applying for a new mortgage. Here’s a quick overview:
- Review your goals – Are you looking to lower payments, pull equity, or change terms?
- Check your mortgage details – Know your current rate, term, and prepayment penalties.
- Calculate your home equity – You’ll typically need at least 20% equity to refinance.
- Gather documentation – Income proof, recent mortgage statements, property tax info, etc.
- Apply and compare offers – This is where a mortgage broker like us can help you save time and money.
What Are the Costs of Refinancing?
Costs will vary, but common refinancing expenses include:
- Prepayment penalties (if breaking before your term ends)
- Appraisal fees
- Legal and closing costs
- Discharge fees from your current lender
The key is to weigh these costs against the total savings or benefits you’ll gain with your new mortgage.
✅ Should You Work with a Mortgage Broker?
Absolutely. At The Local Broker, we work with a wide network of lenders to help you compare your refinancing options, calculate penalties and savings, and get the best rate and terms available.
Plus, our entire process can be done 100% online—or we’ll happily meet up if you’re near Guelph. We’re here to make things easy and clear, without the pressure.
Ready to get started?
Apply for your refinance today—it’s quick, secure, and there’s no obligation.
Take Control of Your Mortgage—On Your Terms
Refinancing gives you the power to adjust your mortgage to match your life—not the other way around. Whether you’re saving money, freeing up equity, or simplifying your finances, we’re here to help you get it done right.
Let’s find a better fit for your mortgage—and your future.
