Mortgage Refinance
Breaking and replacing your existing mortgage with a new one — typically to access equity, consolidate debt, or change loan terms outside of renewal.
Refinancing is the process of breaking your existing mortgage and replacing it with a new one — often to access equity (cash-out refinance), consolidate debt, change amortization, or restructure. Unlike a renewal at end-of-term, a refinance happens mid-term and triggers prepayment penalties (three months' interest for variable, IRD for fixed). Refinances are re-underwritten from scratch: full stress test, income verification, and new appraisal. You can refinance up to 80% LTV on an uninsured basis (refinances are not eligible for insurance). Refinance uses include debt consolidation, renovations, investment property purchases, and lowering the rate.
Related Terms
The fee charged when you pay off or break a mortgage early — the greater of three months' interest or the IRD calculation for fixed-rate mortgages.
A revolving credit line secured against your home's equity, priced as Prime plus a spread — typically 0.50% to 1.00% above Prime.
The ratio of your mortgage balance to the property's appraised value — the key metric for insurance, pricing, and HELOC limits.
Related Guides
- 2026 Mortgage Renewal in Canada: Should You Switch Lenders or Stay Put?
- 2026 Insured Mortgage Advantage: 5% Down Payment, Three Insurers & Best Rates Explained
- 2026 Canadian Mortgage Renewal Guide: 120–180 Day Rate Strategy & OSFI Rules Explained
- 2026 Canadian Mortgage Refinance Guide: Break-Even Calculator, OSFI B-20 Rules & CMHC Limits
Related FAQs
- What's the difference between insured and uninsured mortgage renewals?
- How does mortgage insurance enable lower down payments?
- What property considerations impact my mortgage application?
- What are Loan-to-Income (LTI) limits and how will they affect institutional mortgage portfolios?
- How does mortgage insurance mitigate risk and support new home buyers?