What Is Mortgage Refinancing?
Refinancing means breaking your current mortgage and replacing it with a new one—either with the same lender or a different one. The goal? To improve your financial situation.
Here are some common reasons homeowners refinance:
Get a lower interest rate (especially if rates have dropped since you signed)
Access equity for renovations, investments, or major expenses
Consolidate high-interest debt like credit cards or personal loans
Change the term (shorter or longer amortization)
Switch mortgage types (e.g., from variable to fixed)
How to Know if Refinancing Makes Sense
Refinancing isn’t one-size-fits-all. It depends on your current mortgage, goals, and timing.
Ask yourself:
Have interest rates dropped since I locked in my mortgage?
Do I need to access home equity?
Am I struggling with high-interest debt?
Am I planning to stay in this home long enough to recoup the costs of refinancing?
Has my financial situation changed significantly?
Tip: You’ll want to factor in things like prepayment penalties and legal fees. These costs can often be outweighed by long-term savings—but it’s important to crunch the numbers first.
Let’s Talk About Equity
Home equity is the difference between your home’s current market value and what you still owe on your mortgage. If your home has increased in value—or you’ve paid down a big chunk of your mortgage—you may be sitting on more equity than you think.
You can refinance to tap into that equity and use it for:
Home renovations
Education expenses
A second property
Paying off high-interest debt
Need help estimating how much equity you could access? Reach out anytime—I’m happy to run the numbers for you.
A Real-Life Example: Refinancing to Pay Off Debt
Let’s say you have $25,000 in credit card debt with a 19.99% interest rate. Refinancing your mortgage to consolidate that debt at a lower rate (say 5.5%) could save you thousands in interest—and help you pay it off faster.
The Government of Canada provides a helpful overview of what to consider when refinancing, including questions to ask your lender.
When Refinancing May Not Be Ideal
It’s not always the right time to refinance. You may want to wait if:
You’re near the end of your term and renewal is around the corner
The penalty to break your mortgage outweighs the savings
Your credit score has dropped significantly
Your job or income situation is uncertain
If you're unsure, I can help weigh the pros and cons based on your unique financial picture.
Final Thoughts
Refinancing can be a powerful tool—but it’s not something you want to do without a clear plan. Whether you’re looking to save money, access equity, or simply get ahead on your financial goals, I’m here to help make it smooth and stress-free.
Check out my Mortgage Services page to learn more about how I can support you through refinancing and beyond.
Thinking of refinancing your mortgage? Let’s see if it makes sense for your future. Reach out for a personalized consultation.