Save By Refinancing Your Mortgage
Make Your Ontario Home Equity Work For You
Like many other Ontario homeowners, you may be considering using the equity you’ve built in your home to re-invest in your dreams or consolidate debt.
Ontario Mortgage Refinance Options
A mortgage refinance in Ontario allows you to borrow additional money from the home equity you have accumulated as you’ve paid down your mortgage over the years so you can afford the things you’ve always wanted. It can help save you money and help you consolidate your debt into one convenient payment.
A mortgage refinance may be right for you if you want:
- To consolidate your debt at a lower rate of interest than most major credit cards and loans
- Help with the kids’ education costs, your dream vacation, perfect vehicle, a home renovation and more
- Emergency funds to handle unexpected expenses
- To purchase investments or maximize your RRSP contributions
- A residential property, including rental properties of up to four units
Learn More About Refinancing Possibilities:
Refinance to Consolidate Debt
Refinance to Make Home Improvements
Refinance for a Release of Equity
Home Equity Lines of Credit (HELOC)
Refinance Mortgage CMHC Product Features
- Loan-to-Value ratios up to 80% for 1 – 4 unit owner-occupied properties.
- Maximum additional funds of $200,000.
- Funds can be used for a variety of purposes.
- Flexible financing options – Single & progress advances.
- CMHC offers refinance mortgage loan insurance premium refunds for homeowners who refinance to make energy-saving renovations to an existing home. See CMHC Green Home for more information.
Refinance Mortgage CMHC Insurance Highlights
| Loan Purpose | Refinance / Refi |
| Number of Units | 1- 4 units (no commercial component) |
| Loan-to-Value (LTV) Ratio | Up to 80% based on as-is or as-improved value |
| Maximum Additional Funds | $200,000 |
| Purpose of Funds | Any purpose, except default management |
| Maximum Amortization | 40 years |
| Occupancy |
At initiation, the property that secures a CMHC-insured mortgage loan must be intended for occupancy at some point during the year by a borrower; or a relative of the borrower on a rent-free basis. Lenders must confirm owner occupancy and maintain the confirmation on file. |
| Borrower Eligibility | Permanent Residents including newcomers to Canada. Not available for non-permanent residents |
| General Property Requirements |
|
| General Guideline for History of Managing Credit (Credit Score) |
LTV 60.01% – 80%: Minimum score of 580 LTV < 60%: No minimum score required Access your credit score and credit report from Equifax or Transunion. |
| Debt Service Guideline |
Credit score less than 680 must have a GDS of 35% and TDS of 42% Credit score of 680 or greater must have a TDS of 44% |
| Loan Security | First or Second Mortgage, Chattel Mortgage |
| Interest Rate Types | Fixed, capped and standard variable, and adjustable |
CMHC Refinance Mortgage Premiums for Owner Occupied Properties
| Loan to Value (LTV) Ratio | Premium on Total Loan Amount | Premium on Increase to Loan Amount for Refinance |
| Up to and including 65% | 0.50% | 0.50% |
| Up to and including 75% | 0.65% | 2.25% |
| Up to and including 80% | 1.00% | 2.75% |
Surcharges for Extended Amortization & Blended Amortization
Extended Amortization
Add 0.20% for every 5 years of amortization beyond the 25 year mortgage amortization period
Blended Amortization
For Refinance, add 0.50%
Thinking about a refinance mortgage to consolidate debt or to take advantage of current low interest rates? Contact us about refinance options and how much you can save over the mortgage term. We are looking forward to working with you!
Please note, all information provided on this page are provided by Home Mortgage Ontario, but should be confirmed by visiting the Canada Mortgage and Housing Corporation (CMHC) website.
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