Mortgage refinancing

How does refinancing work?

Refinancing means replacing your current mortgage with a new, larger loan. The difference is paid to you or used to pay off other debts. Here are the main steps:

1. Your property’s appraisal. Its current market value determines the maximum amount you can borrow. Lenders always require you to keep part of the equity in the property.
2. Your application analysis. As with any new loan, the lender checks your income, debts and credit report, and you must qualify under the current rules.
3. The signing at the notary. The notary registers the new mortgage, pays off the old loan and, if applicable, your other creditors, then gives you the balance.

The right time to refinance

The most advantageous time is generally at the end of your term, since no prepayment penalty applies.

Need the funds sooner? It’s possible, but your current lender could charge a penalty. Its amount varies a lot depending on the type of rate and the lender. We calculate the real cost of the transaction with you (penalty, notary and appraisal fees) to make sure it’s truly worthwhile.

Equity take-out

Need cash to carry out a major project? No need to sell your home to benefit from its value. An equity take-out can be used, for example, to:

• renovate your kitchen or bathroom, or expand your home, which can also increase your property’s value;
• give a gift to your child to help them buy their first home;
• build the down payment for a cottage or an income property;
• seize an investment opportunity.

Based on your property’s current value and your loan balance, we structure a refinance that frees up the funds you need. This solution generally offers a much lower rate than a personal loan or an unsecured line of credit.

Depending on your project, it may make more sense to receive the funds as a lump sum or to have them available as needed through a home equity line of credit. We help you choose the most suitable structure.

Estimate how much I could take out

Debt consolidation

Credit cards, personal loans, car loan, tax balance, lines of credit: when debts pile up, they quickly become hard to manage. Do you feel like your paycheques only cover minimum payments, without ever reducing the principal? There are solutions to take back control of your finances.

As a homeowner, you can refinance your mortgage to consolidate all your debts at a much better rate.

• Simpler management. You replace several payments with a single monthly payment.
• Lower monthly payments. Thanks to a lower rate and a suitable amortization, your total monthly payments often drop significantly.
• A financial breather. Your debts don’t disappear, but consolidating them eases the pressure on your budget and lets you breathe again.

A successful consolidation is a well-planned one

By spreading short-term debts over the life of your mortgage, you could pay more interest overall, even at a lower rate. That’s why we propose a complete strategy: for example, putting part of the monthly savings toward prepayments to pay off faster. The goal is for the consolidation to improve your situation for the long term, not just the short term.

Has your credit been affected by your debts? Solutions also exist with alternative lenders. See our Alternative & private lending page.

Alternative & private lending

Adding a home equity line of credit

A refinance is also an opportunity to add a home equity line of credit to your mortgage. You then have funds available at any time, at an attractive rate, and you only pay interest on the amounts you use. See our Renewal page for all the details on this product.

The home equity line of credit in detail

Are you 55 or older?

If you’d like to benefit from your home’s value without adding monthly payments, a reverse mortgage could be a solution to consider. See our Reverse mortgage page for all the details.

The reverse mortgage in detail