Mortgage Refinancing: Who, Why, How?
Mortgage refinancing means replacing your current mortgage with a new one, typically to get a lower rate, free up capital, or consolidate debts. It's a decision that can save you thousands of dollars — or cost you dearly if not planned properly.
Our OACIQ-certified mortgage brokers analyze your situation for free, calculate your exit penalties, and compare available new offers to determine if refinancing is truly beneficial for you.
Why Refinance Your Mortgage?
Refinancing in Your City
Frequently Asked Questions
When is it worth refinancing in Quebec?+
Refinancing is generally worthwhile when current rates are at least 0.5% lower than your current rate, and your prepayment penalty is less than the savings achieved over 12 to 24 months. Our free calculator helps you evaluate your situation.
What is the penalty for refinancing before the term ends?+
The penalty depends on your lender and rate type. For a fixed rate, it's generally the greater of 3 months' interest or the interest rate differential (IRD). For a variable rate, it's typically 3 months' interest only.
Can you refinance up to 80% of your property value?+
Yes. The general rule in Canada is that a refinance cannot exceed 80% of your property's value. If your property is worth $600,000, you can borrow up to $480,000 on refinancing.
What are typical refinancing fees?+
Typical fees include: mortgage break penalty (variable), legal fees ($800 to $1,500), property appraisal ($300 to $500). These costs must be compared to savings over the new term.
Can you refinance to consolidate debts?+
Yes. Debt consolidation refinancing lets you combine credit card debts, personal lines of credit, and auto loans into a single mortgage payment at a much lower rate. It's one of the most advantageous uses of refinancing.
How long does mortgage refinancing take?+
With our brokers, the process typically takes 2 to 4 weeks: file assessment (24-48h), submission to lenders, receiving offers, and signing with a notary.