What are the benefits of refinancing?

If mortgage rates have dropped since you received your mortgage, you're in luck. You can take advantage of reduced interest rates — and lower monthly payments — by refinancing your mortgage, which could result in additional fees or charges. Refinancing your balance with a lower interest rate is called rate-and-term refinancing. Even a slight reduction in the interest rate can lower your monthly payments.

Get a different type of mortgage

Sometimes your needs change and you may have to pay off your mortgage faster or switch your mortgage type. If you get a cash bonus at work, for example, and want to put it towards your mortgage, consider refinancing into a term with more prepayment privileges, such as an open mortgage. Or, if interest rates have dropped, and you plan to stay in your home for the long haul, you can refinance to a fixed-rate mortgageOpens a popup. to lock in a lower rate.

Tap into your home equity

When you make payments to your mortgage, you build equity in your home. Your home equity is the difference between your property's market value and the outstanding balance of your mortgage plus any other debts secured by your property. If you need funds, you can refinance your mortgage to access up to 80% of your home's appraised value¹ in cash.

Estimate your available equity and find out how much you may qualify to borrow with our home equity calculator.

Pay for a major home renovation

Replacing a roof, faulty wiring or plumbing can be costly. If you need help paying for kitchen upgrades, a bathroom renovation or other repairs, you can use your home equity to help cover the costs. You'll get the upfront benefit of the finished project and pay the bill over time.

Make a big purchase

Receiving a hefty tuition bill shouldn't make you panic. To cope with life's major expenses, such as your kids' education or emergency situations, you can access funds through a home equity refinance package or line of credit.

Maximize your investments

Is tax season coming up and you want to maximize your RRSP contributions? Tap into your home equity and borrow additional money on your mortgage to use towards your savings.