REFINANCING · EXPLAINED
How does refinancing work?
Refinancing means swapping your current mortgage for a new one — usually to grab a lower rate, pull out equity, or roll high-interest debt into your home loan at a much friendlier rate.
Apply with a new lender
We shop your file across 50+ lenders, pull your credit, and lock in the best rate you qualify for today.
Pay off the old mortgage
Your lawyer uses the new mortgage funds to pay out your existing lender (plus any penalty for breaking early).
Start fresh with new terms
You keep your home — but with a new rate, a new payment, or extra cash in hand if you pulled equity out.
Refinance or HELOC — which fits?
Both use your home as security, but they work very differently. Toggle between them.
What it is
Replaces your entire mortgage with a brand new one. New rate, new term, new amortization — and you can borrow up to 80% of your home's value.
When it makes sense
Best when rates have dropped, you want to consolidate debt at a much lower rate, or you need a chunk of cash for renovations or an investment.
Pros
- Lower fixed or variable rate than a HELOC
- Predictable payment for the whole term
- Can pull out up to 80% of home value
- Roll high-interest debt into one payment
Cons
- Breaking early triggers a penalty (IRD or 3 months interest)
- Legal and appraisal fees apply
- You re-qualify under today's stress test
QUICK SAVINGS CALCULATOR
What could a lower rate save you?
Drop in your current balance and rate, then drag the new rate slider.
Estimated monthly savings
$272
$3,262 per year
- Old payment
- $2,439/mo
- New payment
- $2,167/mo
Estimate only. Assumes a 25-year amortization with Canadian semi-annual compounding. Doesn't include prepayment penalties or closing costs.
Not sure which makes sense for you?
Tell me about your mortgage and what you're trying to do. I'll run the actual numbers — refinance, HELOC, or staying put — and tell you straight up which one wins.