Replacing your mortgage with a larger one and taking the difference in cash. It is the main way to reach the equity in a property without selling it, and the main way to consolidate expensive debt into a secured one.
Pekoe Mortgages is licensed in Ontario (FSRA #13321) and Alberta (RECA). This stage page routes you to the answer. It does not replace it.
Whether the cost of breaking and re-registering is worth what you get. Refinancing mid-term carries a penalty. Refinancing at maturity usually does not, which is why stage 7 and this stage are often the same conversation.
Consolidating unsecured debt into a mortgage lowers the payment and secures that debt against your home. Both halves of that sentence matter.
| Step | Who does it | What it produces |
|---|---|---|
| Establish why you are refinancing | You | Debt consolidation, a renovation, a purchase, or something a different product suits better |
| Get a current payout figure and penalty | Lender, via your broker | The real cost of breaking mid-term |
| Establish current value | Lender, through an appraisal | How much equity is actually reachable |
| Requalify at today’s rules | Lender | Confirmation the larger mortgage is supportable |
| Close the new mortgage | Your lawyer | Old mortgage discharged, new one registered, funds released |
Refinancing is not a renewal. A new mortgage is underwritten, registered and closed, with the costs that implies.
Being clear about the purpose, because it determines which product and which lender fit.
Pricing the penalty against the benefit, and finding a lender for the purpose rather than the rate alone.
Underwriting you again and valuing the property as it stands today.
Discharging the existing mortgage and registering the new one.
| Document | Why it is needed | What delays it |
|---|---|---|
| Current mortgage statement and payout figure | Establishes balance, penalty and discharge cost | Lender turnaround on the payout statement |
| Current income verification | The larger mortgage is underwritten from scratch | Self-employment, or income that has changed |
| Statements for any debt being consolidated | The lender pays those balances out directly at closing | Missing account numbers and balances |
| Property details for the appraisal | Equity available depends on current value | Appraisal access and turnaround |
| Proof of property tax status | Arrears have priority over a mortgage and must be cleared | Outstanding municipal arrears |
The basics by province. Refinancing in Ontario and in Alberta, with Ontario costs and Alberta costs.
Switch or refinance. What separates a switch from a refinance, and why a collateral charge makes the switch cost more.
Reaching the equity. Equity take out in Ontario, in Alberta, and cash out refinancing.
Consolidating debt. Refinancing to consolidate debt and paying off debt in Calgary.
Adding a suite. Secondary suite financing in Alberta and basement apartments in Ontario.
By city. Calgary, Edmonton and Kitchener-Waterloo.
No. A renewal continues the existing mortgage with the same lender. A refinance is a new mortgage, underwritten, registered and closed, usually for a different amount.
It depends on current appraised value and the lender’s limits for a refinance, which are lower than for a purchase. The appraisal sets the ceiling.
Mid-term carries a penalty, at maturity generally does not. Price the penalty against the benefit rather than assuming either answer.
It lowers the payment and stretches the debt over a longer period, and it moves unsecured debt onto your home. Both consequences are real and should be weighed together.
Yes. A refinance is underwritten at current rules against your current income, not the income you had when you first bought.
Usually, because the available equity depends on what the property is worth now rather than what you paid.
Both are common purposes. The purpose affects which lender and product fit, so say it clearly at the start.
Stage 9, which covers what happens if payments stop and how the process differs between Ontario and Alberta.
Pekoe Mortgages is a licensed brokerage in Ontario (FSRA #13321) and Alberta (RECA). This page is general information, not financial advice, and does not create a broker and client relationship.