Refinancing
Refinancing your mortgage in Ontario
Refinancing replaces your mortgage with a new, larger one so you can renovate, consolidate debt or fund a big expense in Ontario. We show you what it costs, including any penalty for breaking your current term.
Refinancing means replacing your mortgage with a new one, usually for a larger amount. With a bank, credit union or monoline lender you can typically borrow up to 80% of your home's appraised value, minus what you owe. If you refinance before your term ends, your current lender may charge a prepayment penalty, so the timing matters.
At refinance, we can help secure funds for many different needs
What you plan to do with the money changes what we compare, so find the purpose closest to yours.
You're planning renovations
For a kitchen, a basement or an addition, a refinance lets you borrow at a mortgage rate. We compare the refinance with a credit line or a credit card and show the new monthly mortgage payment.
You're carrying higher-interest debt
A refinance can roll credit card and loan balances at higher interest rates into your mortgage. We show the long-term interest cost as well as the monthly saving.
You want to help family or buy another property
For a child's down payment or a second property, lenders will ask where the money is going. We tell you what the lender will want to see before you apply.
The kinds of lender we try, in order
We start with the first kind of lender for every client, and move down the ladder only when the kind above can't help yet.
Banks, credit unions, trust companies and monoline lenders
A bank, credit union, trust company or monoline lender usually costs you least. We start here for every client, and compare more than one lender's offer.
How we compare lenders →Alternative ("B") lenders
We look at alternative lenders when your income, credit or property doesn't fit a bank's rules today. Alternative lenders charge higher rates and fees, often for a shorter term, so we plan your move back to a bank.
When an alternative lender fits →Private money, as a short bridge
We look at a private bridge only when no bank or alternative lender can help yet and there's a clear exit. We refer private requests to Stonefield Capital, our private-lending brand.
When private makes sense →
How we help you go from refinance inquiry to closing
Check your numbers
You check your home's likely value, your balance and any penalty for breaking your current term. Ask your lender for a payout quote to see the penalty.
Compare lenders
We compare refinancing with your current lender against switching, and against alternatives such as a home-equity line of credit.
Appraisal and approval
The lender orders an appraisal and verifies your income. You must qualify for the larger mortgage, including the stress test.
Your lawyer closes the refinance
Your lawyer pays out the old mortgage and any debts being consolidated, and releases the rest to you.
What documents and details do I need to have ready?
You need no documents for the first call. Once we know which documents your lender needs, you share them through a secure application and never by e-mail.
- Latest mortgage statement
- Property tax bill
- Income documents
- Statements for any debts you want to pay off
Questions about refinancing
How much can I borrow when I refinance?
Up to 80% of your home's appraised value, minus your current mortgage balance, with a federally regulated lender (OSFI Guideline B-20). Example: a $900,000 home with a $500,000 mortgage could support up to $720,000 in total borrowing, or $220,000 more, if you qualify for the payment.
Will I pay a penalty?
If you refinance before your term ends, usually yes. On a variable rate, the penalty is often three months' interest. On a fixed rate, the penalty is often the greater of three months' interest or an interest-rate differential, which can be much larger. Ask your lender for a written payout statement before deciding.
Is refinancing to pay off debt a good idea?
A refinance to pay off debt can lower your monthly payments a lot, but it spreads the debt over the life of the mortgage, so you may pay more interest in total. We show both numbers so you can decide.
Rules described on this page were checked on 2026-10-23. Every mortgage is subject to lender approval. This page is general information, not financial advice.
More questions about refinancing
No cost to talk
Ask a mortgage broker to call you back
Tell us what you're planning for a home in Ontario and a good number to reach you. We call back within one business day, usually sooner. We ask for documents only once we know which ones your mortgage needs.
You can also call us at (416) 371-2077.