Refinancing
Put your home equity to work — consolidate debt, fund a renovation, or free up monthly cash flow to get properly insured or add to your investment fund.
Download refinancing guide
Refinancing replaces your current mortgage with a new one, usually to access the equity you've built or to improve your terms. Canadians refinance to consolidate higher-interest debt into one lower payment, finance a renovation, invest, or free up monthly cash flow. A Finevo advisor runs the numbers first, including any penalty to break your current mortgage, so you only refinance when it genuinely puts you ahead.
How a Finevo refinance works
Typically 30–45 days, application to funding
- 1
Run the numbers
Goals, equity and penalty reviewed
- 2
Application
Income and property documents
- 3
Appraisal
Confirms current market value
- 4
Approval
Qualify on the new balance
- 5
Legal & funding
Old lender and debts paid out
Equity calculator
Check how much equity you could access
Enter a few numbers to see an estimate. It updates as you type.
For example, a home equity line of credit (HELOC).
Available equity
$200,000
- Maximum refinance amount (80%)
- $580,000
- Currently owing
- $380,000
- Current loan-to-value
- 52.4%
Estimate only. Final amounts depend on appraisal, lender approval, and qualification. Penalties and closing costs are not included.
What to know
Borrow up to 80% of your value
Access equity up to 80% of your home's appraised value, less what you owe.
Debt consolidation
Roll high-interest credit cards, lines of credit, and loans into your mortgage at a lower rate to reduce total monthly payments.
Penalty analysis
Breaking a fixed-rate mortgage early usually costs the greater of three months' interest or the interest rate differential (IRD). Variable-rate mortgages usually charge three months' interest. We calculate it before you commit.
Renovation & investment funding
Finance a major renovation or a down payment on another property using equity you've already built.
Illustrative case study
How one family freed up $1,529 a month
Maya & James
Dual-income homeowners, two kids
The situation
Maya and James had built solid equity in their home, but credit card balances, a line of credit, and a car loan had crept up. Between their mortgage and debt payments, $3,940 a month was going out the door, and the credit card interest made it hard to get ahead.
| Item | Before | After refinance |
|---|---|---|
| Home value | $725,000 | $725,000 |
| Mortgage balance | $380,000 at 5.00% | $447,200 at 4.24% |
| Amortization remaining | 22 years | 25 years |
| Mortgage payment | $2,365/mo | $2,411/mo |
| Credit cards ($24,000) | $720/mo | Paid off |
| Line of credit ($14,000) | $280/mo | Paid off |
| Car loan ($22,500) | $575/mo | Paid off |
| Total monthly payments | $3,940 | $2,411 |
| Loan-to-value | 52% | 62% |
What it cost
- Prepayment penalty (3 months' interest)$4,750
- Appraisal$450
- Legal fees$1,200
- Discharge fee$300
- Total, rolled into the new mortgage$6,700
Costs recovered in about 4.5 months of savings
- freed-up cash flow
- $1,529/mo
- high-interest debt consolidated
- $60,500
- mortgage-free date with the plan below
- 6 years sooner
A refinance stretches debt over a longer time, so savings only matter if you use them well. Our advisor recommended that Maya and James put $800 of their monthly savings back into the mortgage as prepayments. On that plan, they're mortgage-free in about 16 years instead of 22, and they still keep $729 a month in extra cash flow.
Budget for it
What it costs
Prepayment penalty
Varies by mortgage type and lender. Fixed-rate penalties at major banks can be significantly higher.
Paid from your refinance proceeds
Appraisal
Typically $300–$600.
Paid upfront
Legal fees
Typically $800–$1,500.
Paid from your refinance proceeds
Discharge / admin fee
Charged by your current lender. Typically $200–$400.
Paid from your refinance proceeds
With the exception of the appraisal, all costs come out of the proceeds of the refinance, not out of pocket.
Some lenders offer cash-back or appraisal and legal credits that can offset these costs.
How you qualify
A refinance is a new mortgage, so you'll need to qualify again.
- Stress test: lenders qualify you at a rate higher than your contract rate.
- Debt service ratios: generally up to 39% of income for housing costs (GDS) and 44% for all debts (TDS).
- Credit: your credit history and score.
- Income documents: pay stubs, T4s or Notices of Assessment; self-employed borrowers typically provide two years of NOAs.
Simply renewing or switching lenders at renewal without borrowing more? You generally won't need to re-qualify at the stress-test rate. Learn about renewals.
Refinance vs. the alternatives
| Option | Best for | Watch out for |
|---|---|---|
| Full refinance | Accessing a lump sum and lowering your overall rate | Penalty to break your current mortgage |
| Wait until renewal | Renewal within 6–12 months | Delays access to funds |
| Blend-and-extend / equity take-out with current lender | Keeping your current lender and reducing the penalty | Limited to one lender's rates |
| HELOC | Ongoing or staged spending like renovations | Variable rate; up to 65% of home value as a revolving line, 80% combined with mortgage |
| Second mortgage | Keeping a low first-mortgage rate untouched | Higher rate on the new funds |
Full refinance
- Best for
- Accessing a lump sum and lowering your overall rate
- Watch out for
- Penalty to break your current mortgage
Wait until renewal
- Best for
- Renewal within 6–12 months
- Watch out for
- Delays access to funds
Blend-and-extend / equity take-out with current lender
- Best for
- Keeping your current lender and reducing the penalty
- Watch out for
- Limited to one lender's rates
HELOC
- Best for
- Ongoing or staged spending like renovations
- Watch out for
- Variable rate; up to 65% of home value as a revolving line, 80% combined with mortgage
Second mortgage
- Best for
- Keeping a low first-mortgage rate untouched
- Watch out for
- Higher rate on the new funds
Good to know
- Most refinances are uninsured, so the maximum is 80% of your home's value.
- Exception: CMHC's insured refinance for adding a secondary suite can go up to 90% of the home's as-improved value (lending value under $2 million, up to 30-year amortization; suite must be self-contained and not used as a short-term rental).
- Refinanced mortgages can be amortized over up to 30 years to lower payments.
- An appraisal is usually required to confirm your home's current market value.
Frequently asked questions
How long does a refinance take?
Typically 2–4 weeks from application to funding, depending on the lender, appraisal, and lawyer availability.
Can I refinance with less-than-perfect credit?
Often, yes. Alternative lenders may approve borrowers who don't meet bank criteria, usually at higher rates. An advisor can compare options.
Will refinancing affect my credit score?
A new credit check may cause a small, temporary dip. Paying off high-interest revolving debt can improve your score over time.
Do I have to stay with my current lender?
No. We compare 40+ lenders. Sometimes staying is cheapest because of penalty savings; sometimes switching wins.
Can I refinance a rental or investment property?
Yes, though limits and rates differ. See our investment properties page.
Can I add or remove someone from title?
Yes, a refinance is a common way to do this. Legal fees may be slightly higher.
When is the best time to refinance?
At renewal there's no penalty, so it's often the cheapest time. Mid-term can still make sense when the savings clearly outweigh the penalty.
This information is a general overview of Canadian mortgage options and is not financial advice. Programs, rates, and eligibility are subject to change and to lender and insurer qualification. Speak with a licensed Finevo advisor for guidance specific to your situation.
Let's find the right fit
Connect with a licensed Finevo advisor for a personalized look at your refinancing options across 40+ Canadian lenders.