Mortgage Renewals & Refinancing in Ontario
Learn about mortgage refinancing in Ontario below. This mortgage refinancing guide covers renewals, refinancing options, and strategies for Ontario homeowners. For Bank of Canada policy rate information: https://www.bankofcanada.ca/
Your mortgage term is ending — or you want to put your home equity to work. Either way, you don’t have to accept your current lender’s first offer. I’m Kia Pakravan, a licensed Ontario mortgage agent (FSRA licence #13380), and I help homeowners in Richmond Hill, Markham and across the GTA renew at better rates and refinance to consolidate debt, fund renovations or invest. I compare banks, alternative and private lenders on your behalf — free consultation at (416) 716-9696.
Don’t Just Sign Your Renewal Notice
Most borrowers simply sign the renewal their lender sends — and leave money on the table. At the end of your term there’s no prepayment penalty, which means you’re free to move your mortgage to any lender. You can usually start shopping up to four months before your maturity date. Send me your renewal offer and I’ll tell you honestly whether we can beat it.
Renewal vs. Refinancing: What’s the Difference?
A renewal replaces your mortgage at the end of its term with a new rate and term — same balance, fresh start. A refinance breaks your current mortgage mid-term (or at renewal) and replaces it with a new, often larger mortgage. Refinancing lets you access up to 80% of your home’s appraised value, which makes it the tool for consolidating debt, financing major renovations or funding an investment.
Refinancing to Consolidate Debt
If you’re carrying high-interest credit card or loan balances, rolling them into your mortgage can cut your total monthly payments significantly — mortgage rates are far below unsecured borrowing rates. I’ve written a detailed guide on using a second mortgage for debt consolidation in Ontario. The key question is always the break-even: the interest you’ll save must outweigh the cost of breaking your current mortgage.
What Does Refinancing Cost?
Breaking a mortgage mid-term usually means a prepayment penalty — typically three months’ interest on a variable-rate mortgage, or the greater of three months’ interest and an interest-rate-differential (IRD) calculation on a fixed rate. Add legal fees, possible appraisal and discharge fees. Before you commit, I’ll lay out the full cost against the projected savings so you can see the break-even point in plain numbers.
When Refinancing Makes Sense — and When It Doesn’t
Refinancing is worth a serious look when you’re consolidating expensive debt, funding renovations that add value, or accessing equity for an investment — provided the math works after penalties. It’s usually not worth it when your balance is small, your term ends soon anyway (just renew instead), or the penalty wipes out the savings. I’ll give you a straight answer either way.
Coming Out of a Private Mortgage?
If you’re currently in a private mortgage, renewal or refinance time is the moment to plan your exit strategy back to institutional lending. Exiting takes preparation — credit, income documentation and timing all matter. I map the path with you and execute it when the numbers work. Read more about how private mortgages work.
How the Process Works
1. Review — we look at your current mortgage, renewal offer or equity position, ideally up to four months before your term ends. 2. Compare — I shop your file across banks, alternative and private lenders. 3. Apply — one application, I handle the paperwork and lender follow-ups. 4. Fund — your lawyer closes the new mortgage and the old one is discharged. Most refinances fund within two to four weeks once documents are complete.
Can I switch lenders at renewal?
Yes. There’s no prepayment penalty when your term ends, so you’re free to move to whichever lender offers the best deal.
Will I have to re-qualify with a new lender?
It depends on the lender, the product and your situation. I’ll review your file and tell you exactly what to expect before we apply anywhere.
How much of my home’s value can I access?
On a refinance you can borrow up to 80% of your home’s appraised value, including your existing mortgage balance.
Do you charge a fee for renewals and refinances?
On most standard renewals and refinances, no — the lender compensates me. Any fee on a private or alternative deal is disclosed and agreed upfront.
Renewal coming up, or thinking about refinancing? Call (416) 716-9696 or contact me online for a free review of your numbers. You can also browse all my services.