Refinancing your mortgage in Canada is a smart move when interest rates drop or your credit improves. It allows you to replace your current loan with a better one, possibly with a lower rate or shorter term.
Why Refinance?
- Reduce monthly payments.
- Switch from variable to fixed rate.
- Consolidate debt using home equity.
Best Lenders for Refinance:
- RBC Royal Bank – Low fixed rates and flexible terms.
- Tangerine Bank – No prepayment penalty options.
- Scotiabank – Bundle with other financial products for savings.
Things to Watch:
- Break Fees – Penalties for ending current mortgage early.
- New Term – Resetting to 25 years might cost more over time.
Refinancing can save thousands, but calculate break-even point to see if it’s worth it.