How much equity do I need to refinance?

You generally need to keep 20% equity after the refinance, so the new mortgage can be up to 80% of the appraised value. On a $800,000 home that is a maximum mortgage of $640,000, regardless of what you owe today.

What does a refinance cost?

The mortgage penalty, an appraisal usually between $350 and $600, legal fees usually between $900 and $1,800, and a discharge fee from the outgoing lender. Some lenders cover some of these. We put the full list in writing before you decide.

Can I refinance if my credit has taken a hit?

Often yes, through alternative and B lenders, at a higher rate. The decision is whether the money you save on the debt you are paying out exceeds the extra mortgage interest. That is arithmetic we can run in one call.

Should I wait for my mortgage to mature instead?

If maturity is close, usually yes, because you avoid the penalty entirely. If it is two or three years out and you are paying 22% on credit cards in the meantime, waiting can be the expensive choice.

Mortgage Refinancing Mississauga

Refinancing pays out your current mortgage and replaces it with a new, usually larger one. The difference comes to you in cash, up to 80% of your home's appraised value with most Canadian lenders.

Up to 80%Of appraised value

3 months or IRDFixed mortgage penalty

Payout letterBefore any advice

Reasons people refinance

You have equity in your home and a use for it: renovation, debt, tuition, a business, a down payment on a second property.
Your mortgage is maturing within six months and you want to compare the whole market before signing the renewal.
You are carrying high-interest debt that is costing more each month than a larger mortgage would.
Your income or credit has improved since you last qualified and you may now access better lenders.
You are separating or divorcing and need to buy out the other party's share.

What decides whether it pays

The penalty decides whether it makes sense. Get the exact payout figure from your lender before anyone recommends anything.
On a variable mortgage the penalty is normally three months of interest, which is manageable.
On a fixed mortgage it is the greater of three months interest or the interest rate differential, and the IRD on a low-rate mortgage can run into five figures.
Always compare refinancing against leaving the first mortgage alone and adding a second. Sometimes the second wins by thousands.
Refinancing resets your amortization. Ask what the new payoff date is before you sign.
Budget for an appraisal and legal fees. Some lenders cover them on a refinance, most do not.

Documents to gather

Government photo ID for each applicant
Income confirmation: pay stubs and letter of employment, or two years of T1 Generals, Notices of Assessment and business financials
Current mortgage statement with the exact payout penalty in writing
Property tax bill and, for condos, the monthly maintenance amount
Statements for every debt you want paid out through the refinance
Home insurance policy details

How we price the options

01 Get the real penalty numberBefore anything else, we get your lender's written payout statement. Everything after this depends on that figure.
02 Compare refinance against alternativesRefinance, second mortgage or HELOC, priced out to the same date so the comparison is honest.
03 Appraisal and lender approvalThe lender orders an appraisal to confirm value. Approval comes with conditions we clear on your behalf.
04 Lawyer and fundingYour lawyer registers the new mortgage, pays out the old one and any debts you listed, and releases the balance to you.

Want the penalty checked first?

Start the application, or call 647-505-1096 and talk it through first.

Start an application Call 647-505-1096

Questions we get asked

How much equity do I need to refinance?: You generally need to keep 20% equity after the refinance, so the new mortgage can be up to 80% of the appraised value. On a $800,000 home that is a maximum mortgage of $640,000, regardless of what you owe today.
What does a refinance cost?: The mortgage penalty, an appraisal usually between $350 and $600, legal fees usually between $900 and $1,800, and a discharge fee from the outgoing lender. Some lenders cover some of these. We put the full list in writing before you decide.
Can I refinance if my credit has taken a hit?: Often yes, through alternative and B lenders, at a higher rate. The decision is whether the money you save on the debt you are paying out exceeds the extra mortgage interest. That is arithmetic we can run in one call.
Should I wait for my mortgage to mature instead?: If maturity is close, usually yes, because you avoid the penalty entirely. If it is two or three years out and you are paying 22% on credit cards in the meantime, waiting can be the expensive choice.