Whether you want to lower your monthly payment, tap into your home equity, or consolidate high-interest debt — refinancing could be the smartest financial move you make this year. Compare offers from 138+ lenders in minutes.
Canadian homeowners refinance for different reasons. Here are the most common — see which ones apply to you.
If rates have dropped since you got your mortgage, refinancing can reduce your monthly payments and save you thousands over the remaining term. With the BoC overnight rate at 2.25% (June 2026), many homeowners who locked in during the 2023–2024 peak are now seeing significant savings.
Turn the equity you've built into cash. Use it for renovations, debt consolidation, investing, or major life expenses. Canadian homeowners have over $5 trillion in combined home equity — refinancing lets you tap into yours.
Roll credit card balances (19%–29% APR), personal loans, and car payments into a single mortgage payment at much lower rates. Your mortgage rate — even after refinancing — is almost always lower than unsecured debt rates.
Switch from variable to fixed (or vice versa), extend your amortization to lower monthly payments, or shorten it to pay off your home faster. Refinancing gives you a fresh start on terms that work better for your current situation.
Not happy with your current lender's service, rate, or prepayment options? Refinancing lets you move your mortgage to a new lender — and we'll find you the best offers from 138+ institutions with a single application.
Weddings, education, medical procedures, a new business venture — refinancing can provide the capital for life's biggest moments at rates far below personal loans or credit cards.
Refinancing means replacing your existing mortgage with a brand-new loan — typically with different terms, a different rate, or even a different lender. The new mortgage pays off the old one in full, and you start fresh. Canadian homeowners typically refinance for one of three reasons:
If market rates have dropped since you signed your current term, refinancing locks in the lower rate — reducing your monthly payment and the total interest you pay over the life of the loan.
Also called a cash-out refinance. If your home value has increased, you can borrow against that equity — taking out a larger mortgage and receiving the difference in cash.
Switch from variable to fixed (or vice versa), extend or shorten your amortization, or move to a lender with better prepayment options and customer service.
Regardless of your reason, the process is the same: you apply, get approved, sign a new mortgage contract, and the old one is discharged. Through Credit Trust, a single application reaches 138+ lenders — so you can compare refinance offers side by side instead of negotiating with your current lender one at a time.
Enter your current mortgage details and the rate you could get. Subtract estimated costs to find your break-even point.
Total savings over 20 years: $108,407 — subtract ~$2,000–$5,000 in closing costs for your net savings.
Lenders evaluate three main criteria. Meeting all three gives you the best rates and the widest range of offers.
Loan-to-Value (LTV) = your mortgage balance ÷ your home's current value. Most lenders cap refinancing at 80% LTV, meaning you need at least 20% equity. Example: if your home is worth $600,000, your total borrowing (mortgage + any HELOC) cannot exceed $480,000. The more equity you have, the better your rate.
Gross Debt Service (GDS) compares your housing costs to gross income. Total Debt Service (TDS) compares all debt payments to gross income. If your ratios are too high, consider extending your amortization to lower the monthly payment — or consolidate debts to reduce the TDS numerator.
Conventional lenders (banks) typically want 650+. Alternative and private lenders in our network accept lower scores — but rates will be higher. CMHC-insured refinances may have more flexible requirements if your mortgage was originally insured.
1.Assess your goals. 📋 Why are you refinancing — lowering your rate, cashing out equity, consolidating debt, or switching lenders? Your objective determines the loan structure and whether the numbers actually work in your favour. Take 10 minutes to define your goal before applying.
2.Run the numbers. 🧮 Use our savings calculator to estimate your new monthly payment, your total savings over the remaining term, and your break-even point. Don't skip the penalty calculation — breaking a fixed mortgage mid-term can cost thousands. If the math works, move to step 3.
3.Apply through Credit Trust. ⚡ One application. Three minutes. 138+ lenders. We match you with institutions that offer refinancing products that fit your situation. Compare offers side by side — no credit impact at the pre-approval stage, zero obligation to accept.
4.Appraisal & underwriting. 🏠 The lender orders an appraisal to confirm your home's current market value. Your equity determines how much you can access. Underwriting reviews your income, credit, debt ratios, and employment — expect 1–2 weeks for this stage.
5.Sign, close & receive funds. ✍️ Review and sign your new mortgage documents. Your lawyer registers the new mortgage, discharges the old one, and handles the title transfer. Funds are disbursed directly to you (for equity take-out) or to your creditors (for debt consolidation). Then — you're done.
The biggest cost of refinancing mid-term is the prepayment penalty. Understanding how it's calculated helps you decide if refinancing now is worth it.
Simple and predictable — usually the cheaper option to break
Can be significantly higher than 3 months' interest if rates have dropped since you locked in
Yes — but you'll need a strategy. Here are five ways to improve your chances when your credit isn't perfect.
Include every document upfront — pay stubs, T4s, NOAs, bank statements, employment letter. Ask HR for a letter confirming your tenure and any upcoming raises. A complete file signals seriousness and reduces back-and-forth delays.
The more equity you have, the less risk the lender takes. Conservative lenders want 25%+ equity for bad-credit refinances. Aggressive alternative lenders may accept 10%–15%. Every percentage point of equity above 20% improves your rate.
A good rule of thumb: refinance only if you can save at least 0.5% on your current rate. For bad-credit borrowers paying higher rates, the savings threshold might need to be 1.0%+ to justify the costs and higher alternative lender rates.
If your mortgage was originally insured by CMHC, Sagen, or Canada Guaranty, refinancing may be easier — insured mortgages carry less risk for lenders, and they may be more flexible on credit score requirements.
A co-signer with strong credit (680+) can dramatically improve your approval odds and lower your rate. The co-signer is equally responsible for the mortgage — make sure they understand the commitment.
Bad-credit refinance rates are higher — typically 1%–3% above prime rates. B-lenders and private lenders specialize in this space. Through Credit Trust, you can see offers from both prime and alternative lenders in one search.
Not every situation calls for refinancing. Here's a quick decision guide to help you evaluate.
The safest approach? Apply for pre-approval through Credit Trust — it takes 3 minutes, has zero credit impact, and shows you your actual refinance offers. Then you can make a fully informed decision with real numbers, not estimates.
These are the typical costs. Some lenders offer cash-back or cost-covering incentives — we'll highlight those in your matched offers.
Common questions about mortgage refinancing — rates, penalties, and the application process.
Dig deeper into refinancing topics to make the most informed decision for your mortgage.
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