Who this is for
- Homeowners with high-interest credit card or car loan debt
- Anyone planning a renovation, addition or basement suite
- Investors using home equity for a down payment
- Couples separating where one person buys out the other
How much can I borrow?
Regulated lenders allow a refinance up to 80% of your home's appraised value, minus your current balance. You must qualify at the stress test rate on the new amount.
The penalty question
Breaking a variable mortgage usually costs three months' interest. Breaking a fixed mortgage costs the greater of three months' interest or the interest rate differential (IRD), which can be large at big banks. We get your exact penalty in writing before recommending anything.
Alternatives to a full refinance
A HELOC, a blend-and-extend with your current lender, or a second mortgage can sometimes achieve the same goal at lower cost. We compare all options side by side.
Debt consolidation
Rolling 20% credit card debt into a mortgage can cut payments sharply, but stretches the debt over many years. We show both monthly savings and total interest so you can make a balanced decision.
Worked example (example only, OAC)
- Home value: $750,000 → 80% limit: $600,000
- Current mortgage: $400,000 → available equity: $200,000
- Consolidate $45,000 of credit cards and car loan costing about $1,650/month
- New $445,000 mortgage at a sample 4.39%, 25 years: about $2,440/month vs. previous $2,250 mortgage + $1,650 debts
- Monthly cash-flow improvement: about $1,460. Example only, OAC.
Frequently asked questions
How long does a refinance take?
Typically two to four weeks, including appraisal and lawyer signing.
Do I need an appraisal?
Yes, the lender needs to confirm your home's value. The cost is sometimes covered by the lender.
Can I refinance with bruised credit?
Alternative and private lenders can refinance when banks will not, usually for a short term with a plan to move back. Fees apply and are disclosed upfront.
Is it better to refinance at renewal?
Often yes, because there is no penalty. If your renewal is close, waiting may save thousands.
Do you charge a fee?
Most standard mortgages with good credit cost you nothing; the lender pays the broker. Private and some alternative mortgages carry a broker fee that is disclosed in writing before you commit.
Serving these cities
Related guides
More guides coming soon
Learn more from CMHC and the Financial Consumer Agency of Canada.
Straight answers, no cost and no obligation for most standard mortgages.
Mortgage Kraft · Affinity Mortgage Solutions Inc., Brokerage #13093 · Jay Shah, Licensed Mortgage Broker, Lic. #M22002236 · Rates and examples OAC, subject to change. Not financial advice.