Mortgage Refinancing

How to Get Mortgage Refinancing in Canada

In Canada, if you’ve taken on a mortgage that’s amortized over a long period of time, fortunately for you the re-financing options are very plausible. Since there are so many different mortgage companies, there are various options to consider when thinking about re-financing. Depending on what you obtained your mortgage for in the first place, finding a lower interest rate to refinance with should be an easy task especially if you have all of the information that you need. It doesn’t need to be a challenging or daunting task to refinance a mortgage, especially with the help of Smarter Loans.

In Canada, mortgage refinancing is made simple by Smarter Loans. We are prepared to guide you through refinancing your mortgagee entirely online. Refinancing your mortgage online greatly reduces the amount of time and energy required, especially since paperwork and wait times have been drastically reduced. We’ve already laid the groundwork by neatly organizing all of the refinancing options for mortgages into a directory below. If it’s a mortgage that you are interested in, all you need to do is scroll down and you’ll be able to compare all kinds of mortgage refinancing options that apply to your unique case.

Once you identify the one that works for you, simply click “apply now” and you’ll be able to apply to refinance your mortgage with the interest rate that you desire. If the information laid out is overwhelming or confusing, you can also alternatively pre-apply with Smarter Loans and we’ll take care of the application on your behalf by finding a suitable option for you refinance your mortgage with.

We can help connect you with the top mortgage refinancing providers in Canada.

Pre-Apply For Mortgage Refinancing

Top Mortgage Refinancing Providers in Canada

Company
Amount
Interest Rate
Reviews
Terms
$50,000 and Up
Varies
Varies
$50,000 - Unlimited
Varies
Varies
$50,000 - Unlimited
Varies
Varies
$50,000 - Unlimited
Varies
Varies
$10,000 - $25,000
Varies
12 - 60 months
$50,000 - $100M
Varies
Varies

What is Mortgage Refinancing and How Does it Work?

 

Mortgage refinancing is when you replace your existing mortgage with a new mortgage, usually with better terms than your existing one. When you refinance your mortgage, the funds from your new mortgage are usually used to pay off your existing mortgage.

Why You Might Choose to Refinance Your Mortgage

There are several reasons why you might choose to refinance your mortgage.

A popular reason to refinance is to consolidate debt. If you’ve accumulated a lot of high-interest debt since you initially signed up for your mortgage, you might consider refinancing it. This often makes sense since mortgage rates tend to be a lot lower than the interest rates on credit cards and other forms of unsecured debt.

When you consolidate debt you have two choices. You can take out a new mortgage for the entire amount of your existing mortgage and outstanding debt. Or you can take out a new mortgage for just the amount of your existing mortgage and a separate home equity line of credit for the debt that you’re rolling into your mortgage. This can make sense if you anticipate borrowing more money from your home later on.

Another reason you might want to refinance your mortgage is to access equity. The simplest way to do this is with a home equity line of credit. With a home equity line of credit, you can access up to 65% of the value of your home (provided that your mortgage and home equity line of credit together don’t total more than 80% of the value of your home).

There are two main types of mortgage charges: standard charges and collateral charges. If your mortgage has a standard charge, you’ll need to refinance it to a collateral charge so you can set up a home equity line of credit that allows you to borrow against the equity in your home.

It’s important to be aware that a collateral mortgage has its downsides. Mainly, it makes it tougher to switch lenders when your mortgage comes up for renewal. There may be additional costs involved in switching, too.

A third reason you might refinance your mortgage is to take advantage of lower mortgage rates. If you have a fixed rate mortgage and you’re locked in at a higher rate, you might consider refinancing your mortgage and locking in at today’s lower mortgage rates. (Since you’re refinancing, you also have the opportunity to take equity out of your property if you so choose.)

Before you refinancing, it’s important to be aware that you’ll need to pass the mortgage stress test. You’ll need to qualify at the greater of your mortgage rate plus 2% and the Bank of Canada’s five-year benchmark rate. If you’ve taken on a lot of additional debt and/or your income is lower than when you were first approved for your mortgage, this may no longer be an option.

There may also be legal costs and mortgage penalties involved in refinancing your mortgage. You’ll want to weigh those against your costs savings to see if it’s worth it before breaking your existing mortgage.

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More Articles About Mortgages

Types of Mortgage Refinancing offered:

  • First Mortgage
  • Residential Mortgage
  • Second Mortgage
  • Commercial Mortgage
  • Mortgage Refinancing
  • Home Equity Line of Credit
  • Fixed Rate Mortgage
  • Debt Consolidation
  • Variable Rate Mortgage
  • Cashback Mortgage
  • First Time Homebuyers
  • Construction Mortgage
  • Self Employed Mortgages
  • Bridge Financing

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