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Your mortgage refinancing

Do you need funds for a project that is important to you? Mortgage refinancing involves borrowing additional money against the equity in your home – the difference between the current market value of your home and what you still owe.

Although you will have to pay back a larger amount later on, you will be able to use the money you need now. At Multi-Prêts, we can shed more light on mortgage refinancing and help you determine if this financing solution is right for you!

Why and when to refinance a mortgage?

Mortgage refinancing has several advantages. There are many reasons why you might want to consider refinancing your mortgage. You can use this financing device to obtain a better mortgage rate and thus lower your monthly loan payments.
The amount granted by the bank as part of the refinancing can then be used to carry out renovations or repairs to your home (re-roofing, adding a floor, finishing the basement, etc.). You are free to use the money as you wish!

Here are some other potential projects that you can do with funds from a mortgage refinance:

  • Buy another property (cottage, condo, etc.) ;
  • Investing (investment products, RRSPs, rental property, etc.);
  • Pay for a trip or education;
  • Take an early retirement;
  • Start your own business;
  • Finance the purchase of a vehicle.
    If you are eligible for mortgage refinancing, you can refinance your home whenever you want. Depending on your situation and the costs involved, however, it may be best to do so when your mortgage is almost due.

How does mortgage refinancing work?

The amount of your mortgage refinance is calculated based on the equity in your home, which increases over the years and as you pay off your mortgage with the bank.

To determine this amount, you need to know the current market value of your home and your mortgage balance. Then take 80% of the value of your property and subtract your balance. This will give you the maximum amount you can borrow through a mortgage refinance.

Our brokers can help you get a good idea of how much money you’ll receive, so you’ll know if you want to proceed with this financing option. If so, they will walk you through each step.

What are the factors considered for refinancing?

Refinancing your mortgage depends on a number of factors. Each of these is evaluated and examined in order to determine your eligibility and the amount you can obtain from the bank.

At Multi-Prêts, we inform you about each of them and help you fill out the appropriate documents. Here are the important elements that are considered when refinancing a mortgage:

proof of your household income (pay stub, letter from your employer),

an appraisal of the value of your home

information about your loan record (credit rating, etc.)

your assets and liabilities (possessions, debts),

the amount you would like to borrow.

Once we have determined all these elements together, you will know if you are eligible for mortgage refinancing.

What factors are considered for refinancing?

Refinancing your mortgage depends on a variety of elements. Each of these is evaluated and reviewed to determine your eligibility and the amount you can obtain. At Multi-Prêts, we inform you about each of them and help you fill out the appropriate documents. Here are the important elements that are taken into account in the process:

  • Proof of household income (pay stub, letter from your employer);
  • An evaluation of the value of your property;
  • Information about your credit history (score, etc.);
  • Your assets and liabilities (possessions, debts);
  • The amount you would like to borrow.

Another option: the mortgage line of credit

Instead of refinancing your mortgage to finance your project, you can turn to the mortgage line of credit. Also based on the market value of your home, it offers more flexibility in repayment. You can pay off the principal amount of your choice at any time, or pay off the entire balance without prepayment penalties.

You can use a portion of the funds as you wish and use another portion later. You won’t have to re-apply for credit, and the interest rate is lower than most other financing solutions.

The mortgage line of credit can be used for all your projects or needs.

Debt consolidation

Do you find that your debts are very high, that they are badly spread out or that the interest rate charged by your creditors is too high? If you are having difficulty making all your monthly payments, debt consolidation can help you.

This financing solution allows you to have a loan that frees up cash to simplify the restoration of your budget and limit the amount of money you have to pay in interest charges. If you are interested in this option, consider not delaying too long. A tainted credit score can make it more complicated to get financing from the bank.

How to get approved for refinancing?

Good preparation is essential for you to receive approval for your mortgage refinancing. Your financial broker at Multi-Prêts can make this process as simple as possible. He will help you provide the necessary financial information to prove that you will be able to reimburse the amount of the financing in full.

Your income (before taxes), your monthly housing and living expenses and your total debts, among others, will be taken into consideration. They will have a big impact on whether or not your refinancing application is approved.

Take advantage of a complete accompaniment!

At Multi-Prêts, we make it our duty to help you reach your goals by accompanying you in your mortgage refinancing process.

Through the services we offer, we make sure to facilitate each step of the process and provide you with the advice you need to make informed and relevant decisions. Use our contact form to find out how to refinance your mortgage!


1. How do I determine the value of my home to refinance my mortgage?

To request the refinancing of your mortgage, you must necessarily indicate the value of your property in the file to be sent to the financial institution. However, there are different ways to evaluate the market value of a property.

At Multi-Prêts, one of our brokers can help you estimate the price of your home by taking into account recent sales in your area. This will allow you to know the estimated value of your property based on the information provided on other properties.

2. What is the maximum amount I can borrow when refinancing my home?

You can get a loan of up to 80% of the equity in your home, subject to additional fees. However, your lender may offer you a rate below this figure, depending on your financial situation at the time of application.

3. Can I refinance my mortgage as many times as I want?

While you must have compelling reasons to refinance your mortgage, there are no rules limiting the frequency of this lending mechanism. Lenders most often set a cap.

Each time you apply for a refinance, financial institutions will carefully review your file. Too many applications could damage your credit rating and reduce your chances of getting a favourable opinion from your financial institution.

À chaque demande de refinancement, les institutions financières consultent méticuleusement votre dossier. Un nombre trop élevé de demandes pourrait ainsi nuire à votre cote de crédit et ainsi réduire vos chances d'avoir un avis favorable de votre organisme financier.

4. Are there any advantages to refinancing a mortgage?

Refinancing your home mortgage has various benefits such as consolidating your debts and reducing your overall interest rate. This financing solution also provides you with a substantial amount of money to carry out your various projects.

Despite these interesting advantages, refinancing has certain disadvantages that you should consider before taking the plunge. By increasing the amount of your loan through this technique, you could take longer to repay your mortgage. In addition, even if you benefit from a lower overall interest rate, the outstanding balance of your credit could be higher. Finally, by refinancing your mortgage, you may be forced to pay additional costs, including prepayment fees.

5. What documents are required to obtain a refinance?

To complete your refinancing application, you must provide certain documents:

  • proof of income (pay stub, a letter from your employer...),
  • an appraisal of the value of the property to be mortgaged
  • documents that provide information about your mortgage (copy of the loan deed, last mortgage statement)
  • proof of home insurance.

Failure to provide these items to the lending institution may result in an outright rejection of your refinancing application.


6. How much does it cost to refinance my mortgage?

The mortgage refinancing process always involves a cost. The main expense is the penalty you have to pay to break your mortgage contract. The amount of this penalty is equivalent to the loss of income that the lender must assume until the end of the term.

Apart from that, refinancing your mortgage will also require the intervention of a notary or a lawyer expert in real estate law. These professionals charge a fee that most mortgage brokers and lenders will cover provided your mortgage amount exceeds a certain threshold.

7. What projects can be financed with mortgage refinancing funds?

When refinancing a mortgage, the money obtained can be used to finance a project or cover a specific need. In either case, it is up to you to decide how you want to use the money. For example, you can use it to :

  • Buyback an equity release,
  • to carry out work in your house,
  • change your car,
  • finance your children's education,
  • pay for a trip,
  • build a veranda or a pool.

It is also possible to use this money to finance your wedding or to buy life insurance for your children.

8. Can I refinance my mortgage with another bank?

In Canada, it is possible to refinance your mortgage with a bank other than the one you originally took out the mortgage with. In this case, however, you must take out a new mortgage and pay the notary fees, mortgage fees and registration fees again.

9. What is the role of a mortgage broker?

A mortgage broker is a professional who acts as an intermediary between the various lenders (financial institutions, private lenders) and you. His mission is to accompany you in order to obtain the refinancing of your mortgage under the best possible conditions. Instead of contacting the financial institutions by yourself, the broker will take care of all the steps for you.

This expert knows the specificities of each bank and is, therefore, able to direct you toward the structure whose offers correspond to your needs. This will allow you to benefit from an advantageous refinancing rate according to your financial situation.

At Multi-Prêts, one of our brokers will save you precious time by comparing the different mortgage products offered by the financial institutions. You will avoid making mistakes that could cost you dearly. You live in Canada and are seriously considering refinancing your mortgage. Contact us to explain your project and take advantage of our customized services.

10. What are the steps to follow to refinance a home mortgage?

Like a credit buyback, mortgage refinancing also involves several steps. These include

  • a review of the current mortgage to find out your balance as well as the applicable prepayment penalties,
  • Assessing the market value of your home,
  • Determining how much money you need,
  • submitting the required documents (mortgage documents, income tax returns, pay stubs, etc.) to the financial institution.

You will then have to contact a lending institution to apply for mortgage refinancing. At Multi-Prêts, we assist you in every step of the process. Our brokers will also provide you with pertinent advice according to your objectives so that you can make informed and advantageous decisions.


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