Mortgage refinancing and debt consolidation in Ontario
Refinancing lets you access up to 80% of your home's appraised value to fund renovations, invest or consolidate high-interest credit card and loan debt into one monthly payment. Replacing double-digit interest rates with a lower mortgage rate can restructure your debt and free up monthly cash flow.
Why do homeowners refinance?
High-interest debt consolidation
Combine credit cards, personal lines of credit or car loans carrying 10% to 20%+ interest into your mortgage at a lower rate.
Home capital improvements
Finance major additions or retrofits that build long-term equity in your property.
Equity for life goals
Access capital for investments, education or helping family members with their own real estate purchases.
Loan restructuring
Adjust your mortgage structure or amortization as your financial circumstances change.
Run your numbers
How much equity a refinance could unlock, up to 80% of your home’s value, and what is left after paying off debt. Change any value and the result updates as you type.
Credit cards, loans, lines of credit.
OwedAvailable20% stays
Equity you could access
$340,000
- 80% of your home’s value
- $760,000
- Current mortgage balance
- -$420,000
- Left after paying off the debt
- $302,000
A refinance is a new mortgage, so it is tested at the stress test rate, and a prepayment penalty may apply if you break your term early. Estimate only, not a mortgage offer or approval. Rates and terms vary by lender.
What should you consider before refinancing?
- Equity limitYou can borrow up to 80% of your property's current market value, minus your remaining mortgage balance.
- Breakage feesIf you refinance before your term ends, a prepayment penalty may apply. We compare that cost with your interest savings to see if the move makes sense.
- Appraisal and legal feesA refinance needs an updated home appraisal and legal work to change the charge on title.
- QualificationA refinance is a new mortgage, so it is tested at the stress test rate.
Questions, answered
How much debt can I combine into my mortgage through a refinance?
You can borrow up to 80% of your home's appraised value, minus what you still owe. The refinance payout goes directly toward clearing the debts you choose at closing.
Will I have to pay a penalty to refinance my current mortgage?
If you break your mortgage contract mid-term, your lender may charge a prepayment penalty. We compare your interest savings with any penalty so you can see whether refinancing now creates a net saving.
Related
Rules and figures current as of October 2026.