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Learning Centre · Refinancing & equity
Refinancing & equity
Start with the job you need your financing to do. Then compare the cost of changing your mortgage, the repayment plan and the effect on your remaining home equity.
Guides in this topic
Define the goal before choosing the product
Renovations, debt consolidation and changing household ownership create different financing needs. Begin with the amount required, the deadline and the repayment plan. Then compare a refinance, a HELOC or waiting until renewal without assuming that one structure suits every situation.
Compare the full cost of the change
Bring your current mortgage agreement, balance and maturity date to the review. Request a written penalty estimate and check other expenses. Compare payments over the same period and look at the projected debt remaining, especially if the proposed mortgage extends your amortization.
Frequently asked questions
Should I refinance as soon as the payment looks lower?
Not on that basis alone. Compare penalties, expenses, amortization and the balance remaining over a matching period.
Can I access all my home equity?
No. Lending limits, property valuation, existing secured borrowing and qualification requirements constrain the amount available.
Is a HELOC the same as refinancing?
No. A HELOC is a secured revolving credit product. Refinancing changes your mortgage financing and may involve a different repayment structure.
What should I bring to a refinancing review?
Bring your mortgage statement and agreement, income documents, debt details and a clear explanation of the amount and purpose of the borrowing.
Sources
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