Compare the best mortgage refinancing rates for free.

Compare mortgage rates and save up to $11,944 over 5 years* with LowestRates.ca.

Find the best mortgage refinance rate in just 3 minutes.

Find the best mortgage refinance rate.

Get started

22,713 Canadians

have compared rates and saved money over the last 24 hours

What our users say:

July 18
Responsive helpful
Very helpful thank you
Karel Ferenc
July 17
Great Customer service
I was very happy and please with the outcome of the call, all my questions were ...
Santo
July 17
Quick and easy
Quick and easy. Very helpful broker
Peter Deeprose
July 17
Very knowledgeable and helpful sales…
Very knowledgeable and helpful sales staff.
Lisa Rucha
July 17
Mark was very informative and not…
Mark was very informative and not pushy. He was very helpful and I appreciate it...
Brenda Hanzuk
July 16
Super helpful
Super helpful, quick and easy!
Mandy J
July 12
Excellent service
The lowest rates agent called me right after I finished the initial question and...
D-Glenn Surgenor
July 7
The name says it all
The name says it all, lowest rates available and very professional service. 5 st...
Adam Koester
July 5
The service I received today 7/4/24 was…
The service I received today 7/4/24 was amazing and swift.
MARIO CLARKE
July 3
Quick results
Quick results, connected with a company in no time at all. Ended up doing busine...
Paul in Calgary
July 2
Prompt reply
Fare and competitive rate
Obaid Khan
June 29
Savings
Saved me $300 a year
Eric Buls
June 29
Amazing service
Amazing service, very quick response and helpful staff
Abdo Antoun
June 28
There was an instant offer and then…
There was an instant offer and then quick follow up.
Dcghelani
June 28
The people I was dealing with were…
The people I was dealing with were knowledgeable and very helpful
Evgenia

The best current mortgage rates in Canada

Check out today's best mortgage rates in Canada by type and term.

Rates are based on an average mortgage of $300,000
 Insured ?

The rates in this column apply to borrowers who have purchased mortgage default insurance. This is required when you purchase a home with less than a 20% down payment. The home must be owner-occupied and the amortization must be 25 years or less.

80% LTV ?

The rates in this column apply to mortgage amounts between 65.01% and 80% of the property value. The home must be owner-occupied and have an amortization of 25 years or less. You must have purchased it for less than $1 million. These rates are not available on refinances. Refinances require "Uninsured" rates.

65% LTV ?

The rates in this column apply to mortgage amounts that are 65% of the property value or less. The home must be owner-occupied and have an amortization of 25 years or less. You must have purchased it for less than $1 million. These rates are not available on refinances. Refinances require "Uninsured" rates.

Uninsured ?

The rates in this column apply to purchases over $1 million, refinances and amortizations over 25 years. More info on the differences between insured and uninsured rates.

Bank Rate ?

Bank Rate is the mortgage interest rate posted by the big banks in Canada.

 
1-year fixed rate
Insured
6.59%
80% LTV
5.6%
65% LTV
5.6%
Uninsured
7.35%
6.89%
 
2-year fixed rate
Insured
5.54%
80% LTV
5.14%
65% LTV
5.14%
Uninsured
5.84%
6.19%
 
3-year fixed rate
Insured
4.79%
80% LTV
4.79%
65% LTV
4.79%
Uninsured
4.99%
5.4%
 
4-year fixed rate
Insured
4.79%
80% LTV
4.84%
65% LTV
4.84%
Uninsured
4.99%
5.29%
 
5-year fixed rate
Insured
4.54%
80% LTV
4.69%
65% LTV
4.54%
Uninsured
4.54%
4.84%
 
7-year fixed rate
Insured
4.89%
80% LTV
5.29%
65% LTV
5.29%
Uninsured
5.89%
5.9%
 
10-year fixed rate
Insured
5.69%
80% LTV
5.89%
65% LTV
5.89%
Uninsured
6.09%
7.25%
 
3-year variable rate
Insured
6.05%
80% LTV
6.35%
65% LTV
6.05%
Uninsured
6.05%
8.35%
 
5-year variable rate
Insured
5.65%
80% LTV
5.8%
65% LTV
5.7%
Uninsured
5.7%
6.45%
 
HELOC rate
Insured
N/A
80% LTV
N/A
65% LTV
N/A
Uninsured
N/A
N/A
 
Stress test
Insured
5.25%
80% LTV
5.25%
65% LTV
5.25%
Uninsured
5.25%
N/A

What is mortgage refinancing?

Do you feel your mortgage interest rate is higher than what’s available in the current market? Maybe it’s a good time to look at your mortgage payments and reassess your finances based on current rates. This process of substituting an existing mortgage with a new one is called mortgage refinancing, and it is typically done to access lower mortgage interest rates, change mortgage type, or access the equity of the home.

It can help homebuyers save hundreds of dollars if evaluated carefully. A mortgage broker can help you identify the best available option for your financial situation. If you keep the mortgage schedule payment as is and get a lower interest rate, the more payment will go towards your principal amount. It also potentially shaves off years of amortization from your mortgage term while also saving you money.

Having said that, refinancing or breaking your mortgage earlier than the scheduled date can incur pre-payment penalty so you must evaluate your finances before making this big move.

How does mortgage refinancing work in Canada?

There are a few important aspects to keep in mind when looking for mortgage refinance in Canada. A borrower must evaluate their current financial situation and mortgage loan to figure out why they want to refinance at all. A homeowner can apply for refinance if they have 20% equity in their home. That is, if you paid 20% or more downpayment towards your home. However, some lenders may allow refinancing with less equity too. Lenders also consider the appraised value of the home when refinancing.

Differences between mortgage refinancing and renewal

Mortgage renewal and mortgage refinance are two distinct processes in mortgage financing. Here's an explanation of the difference between the two:

RefinanceRenewal
Refinancing involves replacing an existing mortgage with a new one.Renewal happens when your existing mortgage term comes to an end.
Refinancing could mean you will be changing your lender, depending on the interest rates offered to you.At renewal, you could continue to be with the existing lender by signing a new agreement, after negotiating your interest rate and terms.
Refinancing could be done to access the equity of the home or secure better mortgage terms and lower interest rate.Renewal does not involve accessing equity of the home, but you can negotiate the mortgage terms and interest rate.

How do I qualify for mortgage refinancing?

In order to qualify for mortgage refinancing, the following points must be kept in mind:

How comparing mortgage quotes works. Hint: it’s free!

Compare

Next, we’ll show you quotes from 50+ Canadian banks and brokers. It’s free, with no commitment.

Save

When you find the best quote, secure your rate by talking to a licensed broker or agent.

How do I calculate how much my house is worth?

The best and easiest way to find out what your home is worth is by looking at comparable homes recently sold in your area. In the case of condominiums, you can look at a comparable condo with the same layout, rooms and square footage in your building to get an estimate of what your condo would be priced at if sold today.

When appraising a property, lenders like to look at estimated property value in an area, basement usage, if leasing, what the lease amount could be based on comparable properties in the area. A real estate agent can help you with the recommended selling price or some websites also have the sold information of properties for homebuyers to look at. This really helps make an informed decision.

The pros and cons of refinancing your mortgage in Canada

There are a few important aspects to keep in mind when looking for mortgage refinance in Canada. A borrower must evaluate their current financial situation and mortgage loan to figure out why they want to refinance at all. A homeowner can apply for refinance if they have 20% equity in their home. That is, if you paid 20% or more downpayment towards your home. However, some lenders may allow refinancing with less equity too. Lenders also consider the appraised value of the home when refinancing.

Differences between mortgage refinancing and renewal

Refinancing a mortgage can have several positive outcomes for your financial future, but it may also come with certain challenges. Here are some pros and cons of mortgage refinancing to consider:

Pros of refinancingCons of refinancing
Lower interest rate: Homeowners can avail a lower interest rate than their original one, if it is available in the market. This can help save money in the long run.Penalty costs: Costs such as application fee, appraisal fee, legal fee and potential pre-payment penalties on existing mortgage can make the cost of refinancing higher than any future savings.
Access to home equity: Refinancing can allow homebuyers to access the equity in their homes, which can be used to purchase another property, pay for home improvements, debt payoff or any other expenses.Additional debt: Accessing equity in your home could also mean increasing your debt which could raise your monthly expenses. By consolidating your debt, you are buying more time to pay it off, which could go against your financial independence goal.
Change loan term or mortgage type: By refinancing, borrowers can get a modified mortgage term which can allow them to pay off the loan sooner than later. It also gives the flexibility to change the type of existing mortgage.Restarting mortgage: Refinancing could mean you restart your mortgage after already paying down 5 years (or more) of interest and then going back to a 25- or 30-year mortgage.

Your questions about mortgage refinancing, answered.

How can I refinance my mortgage to consolidate my debt?

Homeowners looking to refinance their mortgages to consolidate their debts will do this with something known as a “cash-out refinance.” This increases your outstanding mortgage balance by the amount of debt you’d like to pay off. This type of refinancing lets the homeowner borrow money on top of their original mortgage loan to pay off high-interest debt in a single monthly payment.

In order to do this, however, you’ll first need to make sure that you have enough equity in your home to pay off your debt. For instance, in the example below, the homeowner has $300,000 of equity in their home and $50,000 in debt they’d like to roll into their mortgage.

  • Value of home: $500,000
  • Maximum equity allowed to access: 80%
    • $500,000 x 80%.
    • Maximum loan amount: $400,000.
  • Outstanding mortgage balance: $100,000.
    • $400,000 - $100,000.
    • Debt Consolidation Limit: $300,000.
  • New Mortgage Amount: $100,000 + $50,000 = $150,000.
    • Remaining Home equity: $300,000 - $150,000 = $250,000.

How can I refinance my home without breaking my mortgage?

When you refinance your mortgage, you are allowed to borrow up to 80% of the value of your home, minus any outstanding balance on your mortgage loan or any other loans secured by your primary residence. However, there are also a number of options for those who want to tap into the equity in their homes without breaking their mortgages. They include the following.

Second mortgages: This is a loan that you take out on your home, which is secured by your home equity. With this type of mortgage loan, as with any type of secured mortgage or HELOC product, you may go into foreclosure if you can’t make your payments and your loan goes into default.

HELOC: A home equity line of credit (HELOC) is a popular way for homeowners to access their home equity. HELOCs often come with flexible payment schedules and allow you to access funding as you need it. This means that you won’t pay interest on any money you haven’t used. The interest rate on a HELOC is typically higher than a 5-year variable rate mortgage.

One major benefit of a HELOC is that you won’t have to break your mortgage, which may mean fewer fees for you in the long run. An additional benefit is the interest payments, which are significantly lower than paying the interest on a lump sum loan. This is ideal for anyone doing renovations who may be having trouble finding the money otherwise. Many lenders will also allow you to convert the balance of HELOC into a mortgage.

Home equity loan: A home equity loan is another name for a second mortgage, but it can also refer to other ways to borrow against your home’s equity. The outstanding principal on your mortgage is subtracted from the amount you’re allowed to borrow from the value of your home.

If homeowners are unable to make the payments and the home goes into foreclosure, the first mortgage lender will be paid out before the second mortgage lender is paid. However, homeowners can also take out a home equity loan after they’ve paid off the mortgage principal on their property. While this would still be considered a home equity loan, it would technically be a first position mortgage as there are no other mortgages on the property.

Homeowners are able to borrow up to the full 80% of their home’s value.

Blended mortgages: Many lenders will allow homeowners to “blend and extend” their mortgages. With this option, homeowners do not have to break their mortgages to access a lower mortgage rate. A blended mortgage lets homeowners combine the rate from an existing mortgage with the rate from a new mortgage to create a new mortgage rate that’s somewhere in the middle. Homeowners can choose to access equity during the process, which will then be added back to their mortgage loan and used to “extend” their mortgage. Homeowners who want to take advantage of this tool but don’t want to extend their mortgages can also request a “blend to term” option where they can secure a lower interest rate without increasing their mortgage term. Because lenders are more likely to lose money on this option, it’s typically only offered to homeowners who want to take out equity, which increases their mortgage amount.

What are current mortgage refinance rates?

The current mortgage refinance rates are usually higher than the current mortgage rates. The rates you’re offered will often depend on the company you refinance your mortgage with. Remember, refinancing your mortgage means that you pay off your existing mortgage with a new one to tap into a number of potential benefits. Therefore, be sure to consider today’s rates when you refinance a mortgage. While the rates for refinancing your mortgage will be higher than the current mortgage rates, they may still be lower than they were when you originally purchased your home. LowestRates.ca updates its mortgage refinance rates daily. Shop mortgage refinance rates by filling out the form above.

If you’re looking to refinance your mortgage, this graph shows rates in Canada dating back to last year for you to compare.

How can I get the best rate on my mortgage refinance?

If you’ve decided to refinance your mortgage for any number of reasons, you’ll want to make sure you secure the best rate. While the rates provided by mortgage refinance calculators can give you a general idea of your costs, the best way to ensure that you secure the best rate on your mortgage refinance is to compare the market before locking into a contract.

At LowestRates.ca, you can find cheap mortgage refinance rates from the top banks and mortgage brokers in Canada. All you have to do is fill out a form to see a comparison of rates from mortgage refinance lenders in your area.

Some other tips for getting a cheap rate on your mortgage refinance include:

  • Shorten your amortization period - If you choose to refinance your mortgage, a 15-year, fixed-rate mortgage won’t yield a lower rate than a 30-year, fixed-rate mortgage. A refinance is similar to a conventional mortgage in that shorter loan periods are considered lower risk to the lender because they get their money back sooner, but mortgage refinance rates will only differ if you can shorten your amortization from 30 years to 25 years.
  • Reduce your debt - Your lender will look at your GDS and TDS ratios to determine whether you can handle your monthly housing costs before approving you for a mortgage refinance. You may be able to reduce your risk - and therefore, reduce your rate - by chipping away at your unpaid debt.
  • Improve your credit history - One of the best ways to indicate to a lender that you’re able to make payments on time (making you more likely to secure a low rate) is to demonstrate a strong credit history. Mortgage refinance rates are no exception. Spending a bit of time improving your credit history before applying for a loan can go a long way towards getting the best rates for mortgage refinances today.

What if I refinance the mortgage on a second property?

Refinancing a second property will be similar to refinancing a primary residence in many ways, except lenders may require you to have more equity in the property than if you were refinancing a home you lived in. Furthermore, rates on a mortgage refinance for a rental property may prove to be higher than if you refinanced the home you live in. This is because the lender knows that your first mortgage will be paid before the one on a second property in the event you default on your payments.

The same goes if you choose to refinance the mortgage on an investment property that you don’t rent out. Rates will likely be higher than if you were simply refinancing the mortgage on your main residence.

Shivani Kaul

Shivani Kaul

About the Author

Shivani Kaul is a content manager in the personal finance space. Prior to this, she worked as a digital editor with Pagemasters North America (a division of The Canadian Press) for four years. Shivani has also worked as a freelance writer and editor for Investor's Digest of Canada and The Ghost Bureau.

Read More

Mortgage news

Read More Like This