Quebec Mortgage Refinancing Guide — 2026

Verified by OACIQ — Updated on July 1, 2026

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Mortgage refinancing involves replacing your current mortgage with a new loan, generally to get a better rate, free up liquidity, or restructure your debts. In Quebec, refinancing allows borrowing up to 80% of your property's value.

The decision to refinance must account for the prepayment penalty, notary fees and the net benefit of the operation. An OACIQ broker can calculate the break-even point of your refinancing in minutes.

Key Points

Reduce your interest rate

If rates have dropped since your last mortgage, refinancing can reduce your monthly payments and total cost. Rule of thumb: if savings exceed the penalty in under 24 months, refinancing is worthwhile.

Unlock home equity

You can borrow up to 80% of your property's value. On a home valued at $600,000 with $250,000 balance, you can unlock up to $230,000 in cash.

Consolidate your debts

Grouping your credit card debts (19–22%) into your mortgage (4–5%) can free up hundreds of dollars per month. On $50,000 in debts, monthly savings can reach $700 to $900.

Calculating the penalty

For a fixed rate: penalty = 3 months' interest OR interest rate differential (whichever is higher). For a variable rate: generally 3 months' interest only. Get this figure from your lender before deciding.

Typical Costs of Mortgage Refinancing in Quebec

Category	Value
Variable penalty (3 months)	$1,500–$4,000
Fixed penalty (differential)	$2,000–$20,000+
Notary fees	$1,200–$2,500
Property appraisal	$300–$600
Lender admin fees	$0–$300
Estimated total	$3,000–$27,000+

Frequently Asked Questions

What is the 80% rule for refinancing?+

In Canada, insured mortgages allow up to 95% of a property's value for purchase. But for refinancing, the limit is 80% of the property's value (uninsured loan). So if your home is worth $500,000, you can refinance up to $400,000.

Can you refinance during your mortgage term?+

Yes, but you'll need to pay a prepayment penalty. For fixed rates, this penalty can be very high (interest rate differential). Ideally, refinance at the term's maturity to avoid penalties.

How long does mortgage refinancing take in Quebec?+

On average, 3 to 6 weeks from application to notary signing. An OACIQ broker can accelerate the process by submitting your file to multiple lenders simultaneously and preparing documentation.

Does refinancing affect my credit score?+

Refinancing involves a credit application, which generates a credit inquiry (temporarily impacts score by -5 to -10 points). But if refinancing consolidates high-rate debt, your credit utilization ratio drops, which improves your score in the medium term.