Refinancing a mortgage in Canada usually costs between $1,000 and $2,500 CAD in fixed fees, plus any prepayment penalty if you break your term early. The penalty is the number that decides whether a refinance makes sense — it can be a few hundred dollars or tens of thousands. The fixed costs Cost Typical range (CAD) Notes Legal / notary fees $800–$1,500 Registers the new mortgage on title. Some lenders cover part of it. Appraisal $300–$600 Confirms value for the 80% loan-to-value limit. Sometimes waived. Discharge fee $0–$400 Charged by your current lender to remove their mortgage. Title insurance $150–$400 Often required by the new lender. Registration fee Varies by province Provincial land registry charge. The prepayment penalty If you refinance before your term ends, your lender charges a penalty: Unlock Your Home Equity Refinancing could save you thousands. See how much equity you can access or how much you could save on your monthly payments. Calculate Savings Variable-rate mortgages: usually three months' interest. Fixed-rate mortgages: the greater of three months' interest or the interest rate differential (IRD). IRD penalties at the big banks can be much larger because of how they calculate the "posted rate" discount. Ask your lender for a written penalty quote before anything else. Our mortgage penalty calculator gives you a ballpark first. Ways to lower the cost Refinance at renewal — no penalty at all. Blend and extend with your current lender to avoid the penalty, at a blended rate. Ask for legal and appraisal coverage — some lenders include it on refinances. Roll costs into the new mortgage if you stay under 80% of the home's value. The break-even test Add up all costs including the penalty, then divide by your monthly savings. That's how many months until the refinance pays for itself. Example: $4,200 CAD in total costs and $210 a month in lower payments = 20 months to break even. If you'll keep the mortgage longer than that, the numbers work. Run your own figures in the refinance calculator. Ready to Get Started? Contact us today for personalized mortgage advice and competitive rates. Get Pre-Approved Call (416) 822-7357 Frequently Asked Questions Can I add refinance costs to my mortgage? Yes, as long as the new total stays at or under 80% of your home's appraised value — the maximum for any refinance in Canada. Do I have to pass the stress test again? Yes. You qualify at the greater of 5.25% or your contract rate plus 2%. Is refinancing cheaper with a broker? A broker's service is usually paid by the lender on standard files, and comparing 50+ lenders often finds a better rate or lender-paid legal fees. For the full process, see our mortgage refinance guide. Want the real numbers on your file? A licensed broker compares 50+ lenders for you, fast. Get My Best Rate
