Refinancing Your Mortgage

When does it make sense to redo your mortgage? We outline your best options — at your best rates.

Whether you want to take advantage of a lower rate, shorten your term, or tap the equity in your home, refinancing can be the right choice, for the right reasons.

Of all the reasons in all the world — your refinance might actually make good sense.

There are some good reasons why you might be considering a refinance of your mortgage.

A refinance means that you want, or perhaps need, to renegotiate your existing mortgage loan in order to replace it with a new one that is a better fit for you.

It can be done any time during your mortgage term, or at renewal time, with differing fees or penalties. If you change lenders, you would then essentially pay out that mortgage to create a new one with a different lender.

It's not a given that refinancing is your best option. Whether you wait until your renewal period, or need to refinance or change lenders in the middle of your current mortgage term — there will likely be fees and charges involved, such as setup, legal or pre-payment penalties. But there are circumstances when it makes real financial sense.

Our True North Mortgage brokers can take a look at your particular situation, quickly sort out the pros and cons, and outline any benefits to help you decide if a refinance is right for you.

Don't miss your renewal time! Use our helpful reminder tool.

What are some pros and cons of refinancing?

The Pros: The good reasons why you may want to refinance

Of course, the best reason is getting the right mortgage that fits you. It's your home, and your mortgage — what do you need?

  • Extra funds for renovations or for investment purposes, by borrowing up to 80% of your home's value (and no default insurance needed!)
  • Save more money by taking advantage of lower rates — to lower your payments or lock in your lower rate for a longer term
  • Pay off your mortgage faster with lower rates AND a lower amortization, keeping roughly the same payments
  • Lower your monthly payment to free up cash flow with a re-extended amortization (increases the time it takes to pay off your mortgage)
  • Consolidate higher-interest debts into a lower-rate mortgage, and one easy payment

The Cons: The extra fees and charges you may incur through refinancing

If the expenses are too cumbersome, they may negate any benefits you may want from your refinance. Our expert brokers take you through the different fees and their costs, based on your exact circumstance — for an accurate picture of what your refinance will look like, and if you stand to benefit.

It will also take some time, approximately 2-3 weeks, to finalize the details. The good news is that our friendly brokers will help make it simple and stress-free.

Here are some fees you may face:

  • Mortgage registration fee, amount varies by province
  • Legal fees (a lawyer will need to oversee your new mortgage)
  • Appraisal fee (a lender will want your home appraised to ensure the value for your new mortgage)
  • Mortgage discharge fees if you switch to a different lender
  • Mortgage prepayment penalties, which for fixed-rate mortgages will be the greater of either 3 months' interest, or the Interest Rate Differential (IRD), to make up for interest that you agreed to at the time of your original mortgage

The bottom line? If the money you save is more than the cost of refinancing, or if you're willing to pay the costs to negotiate for terms that you want — then it may be the right choice for you.

We can help determine if your pros outweigh the cons, lickety-split. We really know mortgages, because it's all we do.

Your mortgage refinance makes more sense with our lower rates.

Save money on your refinance by getting your best mortgage rates — through True North Mortgage. We check with all lenders (even your own bank), and then pass along our volume rate discount to help you save even more. Plus, our salaried, non-commissioned brokers can find you the right mortgage fit for your situation.

It's crazy-easy to start your refinance mortgage process. Start an online chat (click the chat bubble!), give us a call, or simply fill out your easy online application form — it'll funnel you to the right areas to fill out. We'll get back to you shockingly fast!

What is the difference between renewing and refinancing?

Renewing your mortgage. When your renewal comes up, you agree to re-sign with your current lender, at the rate offered (or negotiated), for generally the same mortgage terms and conditions.

Did we get you a lower rate for your renewal? Don't re-sign without talking to us first!

Refinancing your mortgage. A refinance means breaking your current terms and conditions to create a new mortgage with new terms and conditions— whether with your current lender or a different one. It can be done any time during your mortgage term, or at renewal time, with differing fees or penalties. If you have a few years left on your current mortgage term, your lender may allow a refinance mid-term (sometimes called a 'blend-and-extend'), depending on what you want to change (charges may apply).

Need funds? You may be able to unlock up to 80% of your home’s value.

House prices are still going up, almost everywhere. With the significant appreciation of housing prices in the past few years, many of our good-credit clients decide to unlock the value of their homes by refinancing their mortgage for a variety of purposes, including:

  • Asset enhancement (funds to diversify or add other investments)
  • Debt consolidation, such as credit card, car loan and/or line of credit
  • To combine first and second mortgages, for the ease of one mortgage payment
  • Home or property upgrades to improve resale value
Ask yourself:
  • Are you tired of making multiple (four or five) different payments each month?
  • Do you find yourself making minimum payments each month?
  • Are creditors charging interest rates that are higher than today’s current mortgage rates?
  • Do you wish you had more money to purchase stocks, bonds or make other investments?

If you answered yes, our salaried, non-commissioned True North Mortgage brokers are here to help you decide — is refinancing your mortgage the right decision for you?

Here are the refinancing requirements, just for you.

1. Acceptable Loan Purpose

You'll need to have an 'acceptable' refinance purpose, as outlined by lenders. The right reasons will include asset enhancement, debt consolidation, combining first and second mortgages, renovations, and investment purchases.

  • Available for extended amortization up to 30 years
  • Advances up to a maximum of two
  • This program excludes mortgages set for default management purposes

2. Eligible Properties

  • Owner-occupied — maximum four units with at least one unit occupied as the principal residence, and only existing properties (not for new construction)
  • Secondary homes or investment properties — maximum two units, and only existing properties (not for new construction)

3. Loan-to-Value Ratio Limits

  • ‘Loan-to-value’ (LTV) is the relationship between the principal balance of a mortgage and the property value. For example, if you have a house valued at $100,000 with an $85,000 loan, you have an 85% LTV ($85,000 divided by $100,000 = 85%). For this program, the maximum LTV ratio is 80%.

4. Amortization Options

  • Available for extended amortizations up to 30 years (depending on the lender, for currently uninsured conventional mortgages).

It's easy to start your refinance decision right now. Simply use the online application form below. Our True North Mortgage broker will quickly get back to you.

Your easy refinance application form