Mortgage Refinance
Mortgage Refinance: Lower Your Payments Today
Mortgage Refinance: How to Lower Payments & Unlock Home Equity
A mortgage refinance can be one of the smartest financial decisions you make as a homeowner. Whether you’re looking to lower your interest rate, reduce your monthly payments, or access cash from your home equity, refinancing gives you flexibility and control over your financial future.
💡 What Is Mortgage Refinancing?
Refinancing means replacing your existing mortgage with a new one — often with better terms, a lower interest rate, or a different amortization period. Essentially, it’s a way to restructure your loan so it better fits your goals and lifestyle.
Common reasons people refinance:
To lower monthly payments
To access home equity for renovations or investments
To consolidate high-interest debt
To change from variable to fixed rate
To remove or add a co-borrower
📊 When Does Refinancing Make Sense?
Refinancing can save you thousands — but timing is key. You should consider refinancing when:
Interest rates have dropped since you got your original mortgage
You have at least 20% home equity
You want to consolidate high-interest debt (credit cards, car loans, etc.)
You’re approaching your mortgage renewal and want better terms
Use a mortgage refinance calculator to estimate your new monthly payments and potential savings.
💰 Types of Refinance Options
Rate-and-Term Refinance – Replace your existing mortgage for a better rate or new term without taking additional cash.
Cash-Out Refinance – Borrow more than your current balance and withdraw the difference as cash.
Debt Consolidation Refinance – Combine multiple debts into your mortgage to reduce interest and simplify payments.
Renewal Refinance – When your mortgage term ends, switch lenders for a lower rate or better features.
🧾 Steps to Refinance Your Mortgage
Review your current mortgage statement – note your balance, rate, and term.
Check your credit score and income – lenders will verify your qualification.
Compare refinance rates – shop around or use a mortgage broker like RateShop.ca.
Apply for pre-approval – get an estimate of how much you can refinance.
Submit documents – income proof, property tax, and mortgage statements.
Close your new mortgage – once approved, your old mortgage is paid off.
⚖️ Refinance vs. Renewal: What’s the Difference?
Renewal means continuing your current mortgage with the same lender for another term, possibly renegotiating the rate.
Refinance means switching to a new mortgage altogether — potentially with a new lender, term, and conditions.
Refinancing provides more flexibility but may include penalties or closing costs, so always compare savings vs. fees.
🏦 Benefits of Refinancing Your Mortgage
✅ Lower interest rates → smaller monthly payments
✅ Access equity for renovations or investments
✅ Consolidate debt at lower interest
✅ Switch to a fixed rate for stability
✅ Shorten your amortization and become mortgage-free faster
⚠️ What to Watch Out For
Prepayment penalties – if you break your term early
Appraisal and legal fees – may apply depending on the lender
Resetting your amortization – could extend your repayment timeline
Always calculate your break-even point to ensure refinancing truly saves you money.
💬 When You Shouldn’t Refinance
If you plan to sell soon (fees may outweigh benefits)
If your credit score has dropped significantly
If you don’t have enough equity (usually need 20%)
📈 Ready to Refinance? Start with RateShop.ca
Refinancing doesn’t have to be complicated. At RateShop.ca, we help you compare top lenders, calculate your savings, and secure the best refinance rates in Canada — all with one simple application.
Helpful links:
Mortgage Refinance Options
Mortgage Calculator
Compare Mortgage Rates
Get Pre-Approved
