Refinance Your Toronto Mortgage
Use the equity in your Toronto home — strategically.
A refinance breaks or replaces your current mortgage so you can borrow up to 80% of your home's value. Toronto homeowners typically refinance to consolidate high-interest debt, fund a renovation, buy an investment property, or restructure into a better rate or term.
Who this is best for
- Homeowners with high-interest credit card or loan balances
- Owners funding a major renovation or addition
- Buyers using equity for an investment property down payment
- Owners locked into an unfavourable rate or term
How a Toronto mortgage broker helps
- Calculates your real break-cost — IRD vs. three months' interest
- Compares blend-and-extend vs. full refinance vs. second mortgage
- Shops 30+ lenders for refinance-specific pricing
- Models the post-refi monthly cash flow before you commit
- Coordinates the appraisal and lawyer work
What lenders typically look at
- Maximum 80% loan-to-value on a refinance
- Property appraisal usually required
- Re-qualification at the stress test rate
- Income, credit, and existing debt re-reviewed
- Current lender penalty if breaking mid-term
Documents you'll likely need
- Current mortgage statement
- Property tax bill and condo fee statement (if applicable)
- Income proof (pay stubs, T4s, NOAs)
- Statements for debts being consolidated
- Photo ID
A Toronto example
East-end semi, debt consolidation
An owner with a $560,000 mortgage and $70,000 of credit-card and line-of-credit debt is reviewed for a refinance up to 80% LTV. The broker compares the IRD penalty against the monthly savings from rolling consumer debt into the mortgage.
Frequently asked questions
+How much can I borrow when refinancing?
Up to 80% of the appraised value of your home, less the current mortgage balance, subject to qualification.
+What is an IRD penalty?
Interest Rate Differential — a penalty charged by most fixed-rate lenders when you break your mortgage early. It can be significant; a broker calculates it before you decide.
+Should I refinance or take a HELOC?
Refinancing usually has lower rates but resets your mortgage. A HELOC is flexible but has higher rates. A broker compares both for your situation.
+Will refinancing hurt my credit?
One credit pull is normal. Consolidating high-utilization debt into a mortgage often improves your score over the following months.
Related
This website does not guarantee any mortgage rate, approval, or product. We do not provide mortgage advice on this website. All mortgage transactions are handled by the licensed brokerage identified on this site, in accordance with FSRA requirements.