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Making sense of mortgage refinancing

If your financial goals include making a large purchase, completing a home renovation, or consolidating debt, you may be wondering if refinancing your mortgage can help. You may also consider refinancing your mortgage when interest rates drop substantially from the time you signed your last mortgage agreement.

Renegotiating your mortgage contract

If you are looking to renegotiate your mortgage contract, you’re essentially paying off the mortgage you currently hold and replacing it with a new one. This solution comes with some extra fees and penalties associated with breaking a contract. However, with our blend and extend option, you may be able to combine your existing mortgage rate with current rates to create new, blended rate while also extending your mortgage term. When it comes to choosing between these options, it’s always best to talk with a lending specialist who can help you understand your choices and evaluate what will work best for your unique situation.

When to consider renegotiating your mortgage contract


  • When rates drop substantially: If your mortgage interest rate is substantially higher than current rates, refinancing your mortgage may save you a lot of money. However, it’s really a numbers game that’s based on the amount you’d pay in fees and the amount you’d save in interest over time.

  • If you’ve had a change in finances: If your financial circumstances have changed since you purchased your home and the cost of your mortgage has become too much for your budget, your first step should always be to speak with a lending specialist. In this case, you may have the ability to extend your amortization schedule, reducing your monthly payment to keep your home affordable.


Multi-purpose mortgage

Refinancing your home doesn’t always mean breaking a mortgage contract. With our multi-purpose mortgage, you have the ability to tap into your home equity and borrow under a separate lending facility. This can help save money on penalties, while leaving your current mortgage intact. In order to refinance, you’ll need to have at least 20% of your home’s value available in equity.

When to consider a multi-purpose mortgage


  • Making a major purchase: If you’re planning for a large, one-time expense, refinancing your mortgage can be a great option to keep borrowing affordable and convenient. This is particularly true for home renovations that will increase the value of your home, because you may have the ability to use the “as completed” value of your home to determine the equity available for borrowing.

  • Purchasing your next property: If you’re considering purchasing a rental property, you can tap into your home equity to help with the down payment. Our rental property mortgage can allow you to purchase up to six doors (or $1.5 million) with our standard consumer mortgage rates.

  • Consolidating high-interest debt: When refinancing to consolidate debt, you can wrap up several higher interest payments into one single monthly payment at a lower interest rate. This can help keep debt manageable and save you money in the long-term. When it comes to debt consolidation, it’s important to have a plan in place to ensure you don’t accrue more debt.


What's the next step?


The best way to get started is to speak with a lending specialist, who will work with you to understand your goals and explore your options.

When you’re ready to start the conversation, click the button below to fill out our form, and we’ll reach out to you.


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