Your home is likely your largest asset, and over time, you've built substantial equity. Refinancing lets you access that equity for renovations, investments, debt consolidation, or other financial goals. Here's how it works and whether it makes sense for you. What Is Refinancing? Refinancing means replacing your existing mortgage with a new one—typically at different terms. When you refinance to access equity, you're borrowing against the value you've built in your home. How Much Equity Can You Access? In Canada, you can typically refinance up to 80% of your home's current value. Example: Home value: $800,000 Current mortgage: $400,000 Maximum refinance: $640,000 (80%) Accessible equity: $240,000 Common Reasons to Refinance Home Renovations Major renovations can increase your home's value while improving your living space. Kitchen and bathroom upgrades often return 70-80% of their cost. Debt Consolidation Trade high-interest credit card debt (19%+) for mortgage rates (5-6%). See our debt consolidation guide for details. Investment Use equity to invest in rental properties, business ventures, or other investments. Interest may be tax-deductible when borrowing to invest. Education Fund your children's education or your own career advancement. Emergency Fund Create a financial safety net for unexpected expenses. Explore Your Equity Options Curious how much equity you could access? Request a free analysis to see your refinancing options. Refinancing Costs to Consider Typical Amount Legal fees $800 – $1,500 Appraisal $300 – $500 Discharge fee $200 – $350 Prepayment penalty Varies (can be significant) Important: Calculate whether your goals justify these costs. For small amounts, a HELOC might be more cost-effective. Refinance vs. HELOC Both access equity, but differently: HELOC Structure Lump sum Revolving credit Rate Fixed or variable Usually variable Payment Principal + interest Interest only (typically) Best for Large, one-time needs Ongoing or flexible access Learn more in our HELOC vs. refinance comparison. The Refinancing Process Determine your goals – What will you use the equity for? Get an appraisal – Confirm your home's current value Apply for the new mortgage – Income and credit verification Legal process – Discharge old mortgage, register new one Receive funds – Typically at closing Timeline: 2-4 weeks once you've started. What's Next Explore refinancing options to see how much equity you could access and whether it makes sense for your goals. Ready to Get Started? Contact us today for personalized mortgage advice and competitive rates. Get Pre-Approved Call (416) 822-7357 Frequently Asked Questions What Is Refinancing? Refinancing means replacing your existing mortgage with a new one—typically at different terms. When you refinance to access equity, you're borrowing against the value you've built in your home. How Much Equity Can You Access? In Canada, you can typically refinance up to 80% of your home's current value. Example: Home value: $800,000 Current mortgage: $400,000 Maximum refinance: $640,000 (80%) Accessible equity: $240,000 Q: Will refinancing affect my credit score? A: The application creates a hard inquiry (minor impact). Otherwise, refinancing doesn't hurt your credit. Q: Can I refinance if I'm self-employed? A: Yes, but you'll need proper documentation. See our self-employed mortgage guide. Q: What if my home value has dropped? A: You can only access equity based on current value. If your home has decreased in value, options may be limited. Q: Is the interest tax-deductible? A: Only if you're borrowing to invest and generate income. Consult a tax professional for your situation.
