Guides
Mortgage refinance guides
Short, sourced guides to refinancing in Canada: how it works, prepayment penalties, break-even, blend-and-extend, switching at renewal, debt consolidation, costs, cash-out vs HELOC, timing and tips. Each one links to the calculator that answers it with your numbers.
How refinancing a mortgage works in CanadaRefinancing replaces your mortgage: up to 80% of your home's value, a stress test at 6.58% or more, a penalty if you break mid-term, about $2,000 of fees.Read →Mortgage prepayment penalties: IRD vs three months' interestClosed fixed: the higher of 3 months' interest or the IRD; variable: 3 months' interest. Why big-bank IRDs run high (posted-rate method), with a worked $9,765 example.Read →Refinance break-even: how to work it out properlyBreak-even is when interest saved repays the penalty and fees, not costs ÷ payment drop. Example: $12,000 of costs and a 0.81-point drop pay back in 45 months.Read →Blend and extend: lower your rate without the penaltyA blend-and-extend renews early with no prepayment penalty at a mix of your old and today's rate. 5.39% with 30 months left + 4.58% blends to about 4.99%.Read →Switching mortgage lenders at renewalMove lenders at renewal with no penalty; since Nov 21, 2024 an uninsured straight switch skips the stress test. Costs, timing, the 21-day renewal notice.Read →Refinancing to consolidate debt: when it helps and when it hurtsRolling $54,000 of card, line and car debt into a mortgage frees $1,064 a month, but spread over 22 years it can cost $32,618 in interest. How to do it right.Read →What does it cost to refinance a mortgage in Canada?Refinance costs: the penalty (often the biggest), appraisal ~$450, legal and registration ~$1,200, discharge ~$350, cash-back clawbacks.Read →Cash-out refinance vs HELOC: the cheapest way to get the moneyNeed $60,000 from your home? Compare a cash-out refinance, a blend-and-increase and a HELOC over five years: rates, penalty, fees and the 80% / 65% limits.Read →When should you refinance: at renewal or mid-term?At renewal there's no penalty and a straight switch skips the stress test. Mid-term, refinancing pays only if interest saved beats the penalty before the term ends.Read →Refinance tips: nine ways to pay lessNine ways to cut the cost of refinancing in Canada: price the penalty first, use prepayment privileges, ask for a blend, get fees paid, keep your amortization.Read →