Refinance
Put your equity to work, carefully.
Refinancing replaces your mortgage with a new one, often to access equity. It can fund renovations, a down payment on a second property or a better structure. It also has real costs, so we look at the full picture first.
01
Up to 80%
You can usually borrow up to 80% of your home's appraised value when refinancing.
02
Know the penalty
Breaking a fixed-rate term early can trigger an interest rate differential penalty.
03
Requalify
A refinance requires full income documents and the stress test.
How much equity you can access
Lenders limit a refinance to 80% of the appraised value. On a home worth $600,000 with a $350,000 balance, the maximum new mortgage is $480,000, so up to $130,000 could be available before costs, if you qualify on income.
The real cost of refinancing
- Prepayment penalty if you break your term early: usually 3 months of interest for variable rates, and the greater of 3 months or the interest rate differential for fixed rates
- Appraisal to confirm the value
- Notary fees to register the new mortgage
- Discharge fee from your current lender
Sometimes a home equity line of credit or a second mortgage is cheaper than breaking your first mortgage. Sometimes waiting until renewal saves thousands. We run each scenario before you decide.
Common reasons to refinance
- Renovations that add value or make the home work for a growing family
- A down payment on a rental or a second property
- Consolidating higher-interest debt (see debt consolidation)
- Adding a co-owner, or buying out a former partner after a separation
How it works
From first call to the notary, without surprises.
01
Discovery call
Your goal, timeline, income type and down payment. 15 to 20 minutes, no commitment.
02
Your checklist
A personal document list for your situation, shared through a secure channel.
03
Options compared
Rate, term, prepayment rights and penalties side by side, so you choose with the full picture.
04
Approval to keys
Lender conditions handled and your realtor and notary coordinated until funding.
How do I know my prepayment penalty?
Can I refinance with a different lender?
Will refinancing change my payment?
Related services
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Combine credit cards and loans into your mortgage when it truly helps, with the long-term trade-offs explained.
Learn moreRenewal & switch
Compare your lender's renewal offer with the market before you sign, and switch if the numbers make sense.
Learn morePlex & rental properties
Duplex and triplex financing, investment properties, and how lenders count rental income.
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Your next step