Should I Refinance? Calculate Your Savings
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Full Loan Comparison
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| Total Cost (Interest + Balance) | — | — | — |
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Disclaimer: Results are estimates for educational purposes only and do not constitute financial advice. Actual savings depend on your credit score, lender fees, prepaid interest, and local costs. Consult a licensed mortgage professional before refinancing.
Canada Refinance Breakdown
Refinancing a mortgage in Canada operates under a distinct regulatory framework compared to the United States, with the OSFI mortgage stress test playing a central role in qualification. Average Canadian mortgage balances reached approximately CAD $318,000 nationally in 2024, with Toronto and Vancouver markets carrying balances significantly above that figure. With over 1.2 million Canadian mortgages renewing in 2025 and 2026, and the Bank of Canada having reduced its overnight rate multiple times since June 2024, refinancing activity has picked up meaningfully across the country.
Refinance Closing Costs in Canada
Canadian mortgage refinance costs are generally modest, typically ranging from CAD $1,500 to $3,500 for a standard refinance. Costs include a home appraisal ($300 to $500), discharge fee from the current lender ($200 to $350), registration or legal fees ($500 to $1,500 depending on province), and potential prepayment penalties if breaking a fixed-rate term early. Unlike the US, Canada has no nationwide mortgage recording tax equivalent, though provincial land transfer taxes apply to purchase transactions rather than refinances. A notary or real estate lawyer is required for mortgage registration in most provinces.
Cash-Out Refinance Rules in Canada
Canadian mortgage refinances, including equity takeout, are subject to OSFI Guideline B-20, which requires all federally regulated lenders to qualify borrowers at the greater of 5.25% or the contract rate plus 2%, whichever is higher. The maximum LTV for a refinance in Canada is 80% of the home's appraised value, as required by federal regulation. This 80% LTV cap is stricter than for standard renewals and cannot be insured through CMHC. As of November 2024, straight lender switches at renewal are exempt from re-stress testing, but refinances that increase the loan amount continue to require full qualification.
Local Refinance Assistance Programs
Provincial housing programs vary significantly across Canada. In Ontario, the First Home Savings Account (FHSA) assists buyers but has limited refinance applicability. BC's First Time Home Buyer Program and Property Transfer Tax exemptions primarily target purchases. The federal government's Canadian Mortgage Charter encourages lenders to offer tailored refinance relief to at-risk borrowers including payment deferrals and amortization extensions. Federal CMHC-insured mortgage holders approaching renewal should inquire about available renewal protections and extended amortization options under the 2024 mortgage relief measures.