Mortgage Refinancing & Debt Consolidation

Refinancing means replacing your current mortgage with a new one — typically to get a better rate, access equity, or consolidate higher-interest debts into a single, lower payment. When done right, it can save you hundreds of dollars per month and tens of thousands over the life of your mortgage.

Why People Refinance

Debt Consolidation

Roll credit cards (18–22%), car loans (6–8%), lines of credit, and other debts into your mortgage at 4–5%. One payment, dramatically lower interest, immediate cash flow relief. This is the most common reason our clients refinance.

Access Home Equity

Use the equity in your home for renovations, investments, a child's education, or any other purpose. You can borrow up to 80% of your home's appraised value (minus your existing mortgage).

Lower Your Rate

If rates have dropped since you locked in, or if your credit has improved, refinancing into a lower rate can save thousands. We'll calculate whether the savings justify the penalty to break your current term.

Change Your Terms

Switch from variable to fixed (or vice versa), extend your amortization to lower payments, shorten it to pay off faster, or add a HELOC for flexible access to equity.

The Cost of Refinancing

Refinancing is not free. Understanding the costs is essential to knowing whether it makes financial sense:

Cost	Typical Range
Mortgage penalty (if breaking mid-term)	$2,000 – $15,000+
Legal fees	$800 – $1,500
Appraisal (if required)	$300 – $500
Discharge fee (from current lender)	$200 – $350
Typical total	$3,300 – $17,350+

The key question: Will the monthly savings from refinancing recover the upfront costs within a reasonable time? If you save $400/month by consolidating debt, and the total cost is $5,000, you break even in just over 12 months — and every month after that is pure savings.

We run this calculation for every client before recommending a refinance. If it doesn't make sense, we'll tell you.

Debt Consolidation Calculator

Enter your current mortgage details and debts to see how consolidation could improve your monthly cash flow.

Current Situation

Current Mortgage

Balance ($)

Monthly Payment ($)

Current Rate (%)

Debts to Consolidate

Name

Balance

Monthly

Refinancing Costs

Mortgage Penalty ($)

Legal Fees ($)

New Mortgage Rate (%)

Your Results

Important Considerations

You're extending the repayment period. When you roll a 4-year car loan into a 25-year mortgage, you'll pay less per month — but you'll pay interest on that car for 25 years instead of 4. The monthly savings are real, but the total interest cost is higher. For many people, the improved cash flow is worth it. For others, a faster payoff plan makes more sense. We'll show you both scenarios.

Address the root cause. If credit card debt is a recurring pattern, consolidating without changing spending habits will put you back in the same position in a few years — but now with a larger mortgage. We have this conversation honestly with every client. Sometimes the best advice is "not yet."

Timing matters. If you're close to your renewal date, you may be able to consolidate debts at renewal without paying a penalty at all. Contact us 120 days before your renewal and we'll build consolidation into your renewal strategy.

Not all debts should be consolidated. Student loans, for instance, may have tax-deductible interest. Low-rate financing (0% car loans, promotional credit offers) might cost less than your mortgage rate. We analyze each debt individually.

Your mortgage renewal is the single biggest opportunity to save money on your mortgage — or to lose money by doing nothing. Most Canadians simply sign their bank's renewal letter without question. That is almost always a mistake.

Why You Should Never Just Sign

When your mortgage term ends, your bank sends a renewal letter with a rate offer. That offer is almost never their best rate. Banks count on the fact that most people don't shop around — and they price renewals accordingly.

The difference between your bank's posted renewal rate and the rate a broker can negotiate is typically 0.25% to 0.75%. On a $500,000 mortgage, that translates to:

Rate Difference	Monthly Savings	5-Year Savings
0.25% lower	$68/month	$4,080
0.50% lower	$137/month	$8,220
0.75% lower	$206/month	$12,360

These are real savings that take 15 minutes of your time. There is no cost to work with us — the lender pays the broker fee. You get a better rate and it costs you nothing.

When to Start

120 days before your maturity date — that is when you should contact us. Most lenders allow a rate hold 120 days in advance, meaning we can lock in a competitive rate well before your renewal date. If rates drop further before closing, we can usually get you the lower rate.

If your renewal is less than 120 days away, contact us immediately. We can still help — the process is straightforward and typically takes less than a week.

If your renewal is more than 120 days away, that's fine too. We can review your current mortgage and advise whether it makes sense to break early (sometimes the penalty savings are worth it) or wait for renewal.

What to Look for in Your Renewal Letter

When you receive your renewal letter, look for these key items before signing anything:

The offered rate — Compare this to current market rates on our rates page. You can also run the numbers through our mortgage calculator. If there's a gap of 0.15% or more, you're likely leaving money on the table.

The term — Your bank may default to a 5-year fixed. That may not be optimal for your situation. A shorter term or a variable rate could save you significantly depending on the rate environment.

Prepayment privileges — Check whether you can increase payments, make lump sums, or pay off early without penalty. These terms matter more than most people realize.

Penalty terms — Understand the cost of breaking the mortgage early. Some lenders charge significantly more than others for the same action.

Portability — If you might move during the term, ensure your mortgage is portable. Not all lenders offer this, and losing portability can be costly.

What the Renewal Process Looks Like

Send Us Your Renewal Letter

Email or bring in your renewal offer. We'll review the rate, term, and conditions and tell you immediately whether we can do better.

We Shop the Market

We compare rates and terms across dozens of lenders — major banks, credit unions, monoline lenders, and trust companies. We find the best combination of rate, terms, and flexibility for your situation.

You Decide

We present your options with a clear recommendation. You decide whether to stay with your current lender (sometimes we can negotiate them down) or switch. Switching at renewal is free — there are no penalties.

We Handle Everything

If you switch, we manage the paperwork, coordinate with the new lender and your lawyer, and ensure the transition is seamless. There is no cost to you — the lender pays our fee.

It's Also a Good Time to Reassess

Renewal is not just about the rate. It is also an opportunity to reassess your overall mortgage strategy. Has your situation changed in the last five years? Common reasons to restructure at renewal include:

• Consolidating high-interest debt into your mortgage

• Accessing equity for renovations or investments

• Adjusting your amortization to change payment amounts

• Setting up a HELOC for flexibility

• Planning for an upcoming retirement or income change

Refinancing & Debt Consolidation