Find a new lender, access your home equity or lower your rate
Refinancing lets you tap into the equity you've built, consolidate high-interest debt, or lock in a better rate. Frank Mortgage scours the market to find the deal that works best for you.
Why homeowners refinance
There's no single reason to refinance. The right move depends on your financial situation, current rate, equity, and goals. Here are the four most common situations we see.
Access Equity
Your home has appreciated and you want to put that equity to work for renovations, investment, education, or an emergency fund. Refinancing up to 80% LTV unlocks built-up equity without selling.
Lower Your Rate
Rates have dropped since you signed, or your credit has improved significantly. A lower rate means less interest paid over the life of the mortgage. But weigh this against any prepayment penalties.
Consolidate Debt
Rolling high-interest credit cards or lines of credit into your mortgage at a much lower rate can save hundreds per month and free up some budget for other life expenses.
Change Your Structure
Switch from variable to fixed (or vice versa), shorten your amortization to build equity faster, extend amortization to lower the monthly payments, or add a HELOC component. Refinancing lets you redesign the mortgage to fit your life.
Refinancing in 5 steps
From understanding your penalty to getting your new keys, here is exactly what happens.
Understand your prepayment penalty
Before you decideBreaking a mortgage before its maturity date triggers a prepayment penalty. The amount depends on whether you're in a variable or fixed rate mortgage and, if a fixed rate mortgage, how far apart your existing mortgage rate is from current market rates.
- Variable rate: penalty is typically 3 months' interest - usually a few hundred to a few thousand dollars.
- Fixed rate: penalty is the greater of:
- Get your payout statement: call your lender for the exact penalty amount before making any decisions. Frank can help you interpret it.
Calculate your available equity
Before you applyCanadian lenders let you refinance up to 80% of your home's current appraised value. Enter your numbers below to see the maximum equity you can access.
Model your new payment
Right nowEnter your projected new mortgage amount and today's rate to see what your payment would be. Compare it to your current payment to understand the real impact on your budget.
Apply — one application, multiple lenders
1–3 weeksApply online and upload documents. Your Frank Mortgage advisor prepares and submits the application to the lender, negotiates on your behalf and manages the entire process for you.
- Documents you'll need: recent mortgage statement, proof of income (T4s or NOA), letter of employment, recent pay stub, min. 90 days of bank statements, property tax bill.
- Stress test: for refinances at federally regulated lenders, you must qualify at your contract rate + 2% or 5.25%, whichever is higher.
- Appraisal: most lenders require a current appraisal to confirm the property value - typically costs $300–$600.
Close and enjoy your equity take-out and/or better rate
Closing dayYour real estate lawyer handles all the paperwork for closing. They register the new mortgage, discharge the old one, and transfer any equity you're accessing directly to you. Your new payment schedule starts right away.
- Legal fees: budget $1,500–$2,500 for a real estate lawyer to handle the discharge and new mortgage registration.
- Discharge fee: your old lender typically charges $200–$350 to discharge the existing mortgage.
- First new payment: usually within 30 days after closing.
Not sure if refinancing makes sense for you?
The math matters. Our advisors will calculate your penalty, model your interest savings, and tell you the break-even point so you know exactly when you'll come out ahead.
- Free, no-obligation analysis of your current mortgage
- IRD calculation and break-even timeline
- Comparison of refinancing vs. waiting for renewal
Today's refinance rates
Compare current refinance rates from 20+ Canadian lenders. Rates updated daily.
Common refinancing questions
What exactly is mortgage refinancing?
Refinancing means replacing your existing mortgage with a new one — typically to access home equity, lower your interest rate, consolidate debt, or change your mortgage structure (e.g., from variable to fixed). It usually involves breaking your current mortgage before its maturity date, which triggers a prepayment penalty. If you're within a few months of your renewal date, it's often better to wait and avoid the penalty entirely.
What is the penalty for breaking my mortgage mid-term?
It depends on your mortgage type:
- Variable rate: typically 3 months' interest on the outstanding balance.
- Fixed rate: the greater of 3 months' interest or the Interest Rate Differential (IRD). The IRD is calculated as the difference between your rate and the lender's current rate for a similar term, multiplied by your balance and remaining months. It can be $5,000–$25,000+ if rates have dropped significantly.
Always ask your lender for a payout statement with the exact penalty before making a decision.
How much equity can I access through refinancing?
Canadian lenders allow you to refinance up to 80% of your home's current appraised value. The formula is:
Available equity = (Home value × 80%) − Remaining balance
For example: a $900,000 home with a $450,000 remaining balance → maximum new mortgage of $720,000 → $270,000 in accessible equity. A new appraisal is typically required to confirm the current market value.
Does refinancing affect my credit score?
Yes, briefly. The mortgage application triggers a hard credit inquiry, which may lower your score by a few points for a short period. However, if you're using the refinance proceeds to pay off high-interest debt (credit cards, lines of credit), your overall credit utilization will drop — which typically improves your score over the following few months. Frank submits a single application for all lenders, so you only take one hard inquiry hit regardless of how many lenders we approach.
When does refinancing NOT make sense?
Refinancing may not be the right move if:
- Your prepayment penalty is larger than the interest savings you'd gain
- You're within 6–12 months of your renewal date — it's usually better to wait
- You're extending your amortization just to reduce payments without a clear financial reason — you'll pay significantly more interest over time
- Your home's value has declined and you no longer have sufficient equity
- Your income or credit has changed and you may not pass the stress test
Our advisors can model the break-even point for your specific situation so you can make a fully informed decision.
Related guides & articles
Home Equity
How to Access Your Home Equity
Refinance, HELOC, or second mortgage — understand each strategy and when to use it.
Read more →
Refinancing
Thinking About Refinancing Your Mortgage?
A plain-language breakdown of when refinancing makes financial sense — and when it doesn't.
Read more →
Debt Consolidation
How to Use Home Equity to Pay Off High-Interest Debt
The numbers behind rolling credit card debt into your mortgage — and where to be careful.
Read more →
Rate Strategy
Fixed Rate or Variable Rate Mortgage?
How to choose the right rate structure when refinancing — and what each commits you to.
Read more →
Renewal
Renew or Switch at Maturity
If you're within a year of renewal, switching lenders at maturity avoids penalties entirely.
Read guide →
Amortization
Amortization Period Impact
Extending vs. shortening your amortization at refinance — and the long-term cost difference.
Read more →
Ready to find out if refinancing makes sense?
Our licensed advisors will run the numbers — penalty, savings, and break-even — at no cost and with no obligation.