Mortgage Refinancing
Restructure your mortgage to lower your payments, access equity, or consolidate debt.
What Is Refinancing?
Refinancing means replacing your existing mortgage with a new one — typically to take advantage of a lower interest rate, access the equity you've built up, or restructure your debt. It can be done at renewal (penalty-free) or mid-term (where a prepayment penalty may apply). I'll help you run the numbers to determine whether refinancing makes financial sense for your situation.
Reasons to Refinance
Lower your interest rate
If rates have dropped since you took out your mortgage, refinancing could significantly reduce your monthly payments and total interest paid over the life of the loan.
Access home equity
You can refinance up to 80% of your home's appraised value, giving you access to funds for renovations, investments, or major expenses.
Consolidate high-interest debt
Roll credit card balances, car loans, and personal loans into your mortgage at a much lower rate — often cutting your monthly obligations significantly.
Change your mortgage structure
Switch from variable to fixed (or vice versa), adjust your amortization period, or change your payment frequency to better suit your financial goals.
Remove or add a co-borrower
Life changes — divorce, marriage, or a co-signer leaving the picture. Refinancing allows you to restructure ownership and liability.
Understanding Prepayment Penalties
If you refinance before your term ends, your lender will charge a prepayment penalty. For variable-rate mortgages, this is typically 3 months' interest. For fixed-rate mortgages, it's the greater of 3 months' interest or the Interest Rate Differential (IRD) — which can be substantial. I'll calculate your penalty and compare it against your potential savings so you can make an informed decision.
The Refinancing Process
Review your current mortgage
We look at your existing rate, remaining term, penalty, and equity position.
Define your goals
Are you lowering payments, accessing equity, or consolidating debt? Your goal shapes the best strategy.
Shop the market
I compare lenders to find the best rate and terms for your new mortgage.
Close the new mortgage
Your lawyer registers the new mortgage and pays out the old one. The process typically takes 2–4 weeks.
Refinancing FAQs
How much can I borrow when refinancing?
You can refinance up to 80% of your home's current appraised value, minus your existing mortgage balance.
When is the best time to refinance?
At renewal is ideal — no penalty applies. Mid-term refinancing makes sense when the savings outweigh the penalty, which I can calculate for you.
Will I need a new appraisal?
Yes, most lenders require a current appraisal to confirm your home's value before approving a refinance.
How long does refinancing take?
Typically 2–4 weeks from application to closing, depending on the lender and complexity of the file.
Is Refinancing Right for You?
The math matters. Let me run the numbers for your specific situation and show you exactly what you'd save — or whether it's better to wait for your renewal.
- ✓Lower your rate or access equity
- ✓Consolidate high-interest debt
- ✓Rachel handles everything
Talk to Rachel — it's free
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