Tell Igor what you want to accomplish
Start with the reason.
Not the mortgage product.
Mortgage refinancing in Ontario
Your home has equity. The real question is what you want that equity to accomplish.
Refinancing can allow a homeowner to change an existing mortgage and, where qualification and available equity permit, potentially access additional funds.
But getting access to money is not the objective. Improving the financial situation is.
Business owners may consider refinancing to consolidate higher-cost debt, renovate, invest in another property, create additional liquidity or reorganize their finances.
Initial consultation at no cost · No credit check required to start · Nothing submitted without your approval
Before changing the mortgage, Igor helps you understand
- What you are trying to accomplish
- How much equity may realistically be available
- Whether you may qualify for the new financing
- What changing the mortgage could cost
- Whether the potential benefit justifies those costs
Since 2010
Mortgage professional
Former Scotiabank, CIBC & RBC Mortgage Specialist
FSRA Mortgage Agent Level 1
Licence #M26000762
Serving Ontario
In person, office, phone or Zoom
Don’t start with “How much can I borrow?”
Start with: “What problem am I trying to solve?”
Refinancing creates a new financial arrangement. That means the reason for doing it matters. Common objectives include:
Consolidating higher-cost debt
Replacing qualifying higher-interest debts with mortgage-secured borrowing may reduce the interest rate or required monthly payments.
But transferring debt to a mortgage can also extend how long you repay it.
The monthly payment is only one part of the comparison.
Renovating the property
If you are planning a substantial renovation, accessing equity may be one way to finance it.
The right structure depends on the project, available equity, qualification and other borrowing options available to you.
Purchasing another property
Some homeowners consider accessing equity to help fund another real-estate purchase.
That creates additional leverage and obligations, so both transactions should be considered together.
Improving cash flow
A refinance may alter monthly debt obligations.
For a business owner whose income varies, cash-flow flexibility may be valuable.
But lower monthly payments do not automatically mean lower total borrowing costs.
Reorganizing existing financing
You may want to change the mortgage amount, amortization, lender or structure as part of a broader financial change.
Business-related capital
Some business owners consider using personally held home equity for business purposes.
That decision deserves particular care.
It can put your home behind a business risk and may create legal, accounting and tax considerations outside the scope of mortgage advice.
Speak with the appropriate accounting, tax and legal professionals before using home-secured borrowing for business purposes.
How much equity may be available?
Home value minus existing borrowing is not the same thing as cash you can automatically access.
In many conventional refinancing situations, total borrowing secured against the property is generally limited to a percentage of the property’s current value. For example:
- Estimated property value
- $1,000,000
- 80% of value
- $800,000
- Existing mortgage
- $500,000
That does not automatically mean you can borrow another $300,000.
The lender still has to consider:
- The appraised or accepted property value
- Your income
- Your existing obligations
- Credit
- The mortgage product
- And the lender’s underwriting criteria
Equity creates the possibility.
Qualification determines what can actually be financed.
Self-employed?
Having substantial equity does not remove the income question.
This catches some business owners by surprise.
You may own a valuable home with a relatively small mortgage and still need to demonstrate sufficient qualifying income when refinancing.
If your income comes through:
- Salary
- Dividends
- Business income
- Commissions
- Partnerships
- Rental properties
- Or a combination of sources
the lender still needs to determine what income it can support under its policies. That is why the refinance conversation should look at both sides:
The property
How much equity is available?
and
The borrower
How much financing can the income and overall application support?
Using a refinance to consolidate debt
A lower interest rate can help. A longer repayment period can hurt.
Debt consolidation can look attractive because mortgage-secured borrowing may carry a lower interest rate than unsecured debt.
But there is an important trap:
Lower payment ≠ lower total cost.
Imagine moving short-term consumer debt into a mortgage and then repaying it over many years.
The rate may be lower. The monthly payment may be lower.
But stretching the debt over a much longer period can increase the total interest paid.
So the useful comparison asks:
- What debts are being repaid?
- What rates are you currently paying?
- How much interest remains?
- What would the new mortgage cost?
- How long would you take to repay the consolidated amount?
- What refinancing costs apply?
- Will the behaviour that created the debt change?
The objective should be to improve the debt picture — not merely make this month’s payment smaller.
Before you change the mortgage
Refinancing is not free.
Depending on the circumstances, potential costs can include:
Mortgage prepayment penalty
If you refinance before the existing term ends, the current lender may charge a penalty. The amount depends on the mortgage contract and lender.
Appraisal
The new lender may require an appraisal to establish the property’s value.
Legal and registration costs
Changing the financing can require legal work and registration.
Discharge or administrative fees
The current or new lender may have applicable fees.
Lender fees
Some lenders charge their own fees on certain files. Any lender fee appears in your mortgage commitment before you sign.
More interest over time
Extending the amortization can reduce payments while increasing the period over which interest is paid.
That cost can be much larger than the visible transaction fees.
The right question is:
“After all the costs, am I better off?”
You may not need to replace the whole mortgage
A refinance and a line of credit solve different problems.
Depending on the circumstances, borrowing against home equity can take different forms.
Mortgage refinance
Typically restructures mortgage borrowing into scheduled principal-and-interest payments.
May make sense when you know how much you need and want a structured repayment schedule.
Home Equity Line of Credit
Provides revolving access to available credit up to the approved limit.
Interest rates are generally variable, and the flexibility can make it useful for some purposes.
That flexibility can also make it easier to carry debt indefinitely.
Other secured borrowing
Other forms of home-secured credit may also exist depending on the borrower and lender.
There is no universally superior option.
The structure should fit:
- How much you need
- When you need it
- What it will be used for
- How quickly you intend to repay it
- And how much payment variability you can tolerate
Timing matters
Changing the mortgage at maturity can be different from changing it halfway through a term.
If your mortgage is approaching renewal, restructuring the financing at maturity may avoid certain costs associated with breaking the existing mortgage early.
If you need the financing now, waiting may not serve the objective.
The comparison should include:
Refinance now
versus
Wait until renewal
and, where appropriate,
Use another borrowing structure in the meantime
The best answer depends on the numbers.
Four questions
A refinance should survive all four.
- 1
What problem does it solve?
Be specific.
“Access cash” is not the end goal.
What will the cash do?
- 2
What does changing the mortgage cost?
Include penalties, fees and the impact of the new borrowing structure.
- 3
What happens to the monthly cash flow?
Does the change create meaningful breathing room?
Or simply move debt around?
- 4
What happens to the total debt over time?
Will you repay the debt faster? Slower?
Will your total interest cost increase?
If the refinance improves one number while making the broader financial situation worse, it may not be the right solution.
How to think about the decision
Compare the outcome — not just the new payment.
Suppose a homeowner has:
- Mortgage
- $450,000
- Higher-interest consumer debt
- $60,000
They consider refinancing to combine the borrowing.
The refinance might reduce the interest rate on the $60,000 portion and lower their monthly debt payments.
That sounds good.
But now ask:
- How much does it cost to break or replace the current mortgage?
- What rate applies to the new mortgage?
- How long will the additional $60,000 remain outstanding?
- Will the borrower continue making aggressive payments against that portion — or let it amortize for years?
Two refinances with the same new mortgage balance can have very different financial outcomes.
The structure and repayment plan matter.
Example is illustrative only and does not represent a recommendation, quote, approval or guarantee.
What Igor reviews
Five pieces before deciding.
01
Your objective
What do you want the refinance to accomplish?
02
Your existing mortgage
- Current balance
- Rate
- Remaining term
- Amortization
- Potential penalty
- Features
03
Your available equity
What is the property reasonably worth and what borrowing is already secured against it?
04
Your current qualification picture
- Income
- Debts
- Credit
- Business structure
- Other properties
- Relevant documentation
05
The alternatives
- Refinance now?
- Wait for renewal?
- Use a different secured borrowing structure?
- Do nothing?
The answer is the route that best fits the objective and numbers — not the route that creates the largest new mortgage.
How it works
Understand the decision before changing the debt.
Review the existing financing
Understand the current mortgage and the potential cost of changing it.
Review equity and qualification
Determine what may realistically be available based on the property and financial picture.
Compare the routes
Review applicable mortgage structures, borrowing costs and trade-offs.
Decide
You decide whether changing the financing improves your situation enough to justify the transaction.
Nothing is submitted to a lender without your approval.
Using home equity in your business?
Separate the mortgage decision from the business decision.
A mortgage professional can help explain the financing.
That does not answer whether putting personally secured money into a business is financially, legally or tax-wise appropriate.
If you are considering refinancing your home to:
- Invest in your company
- Purchase equipment
- Fund an acquisition
- Cover operating losses
- Pay business taxes
- Or provide working capital
consider involving your accountant, tax advisor and/or lawyer as appropriate.
Your home is securing the borrowing.
That deserves a higher standard of decision-making than simply asking whether a lender will provide the money.
Igor Perett
Mortgage Agent Level 1 · Licence #M26000762
Why work with Igor
The job is not to maximize your mortgage balance.
It is to help you understand the financing decision.
Igor Perett has worked in mortgages since 2010, including previous Mortgage Specialist roles with Scotiabank, CIBC and RBC.
Today, Igor is a Mortgage Agent Level 1 with Affinity Mortgage Solutions Inc., Dominion Lending Centres.
He works with homeowners across Ontario, with particular experience helping business owners and self-employed borrowers whose income may require a more detailed review.
Mortgage Agent Level 1, Licence #M26000762
Affinity Mortgage Solutions Inc., Dominion Lending Centres, Brokerage #13093
Independently owned and operated
Serving clients across Ontario in person wherever suits you, at the office, by phone or on Zoom, in English and Russian.
Refinancing questions
Frequently asked questions
In many conventional situations, total borrowing secured against a home may generally reach up to 80% of the property’s value.
That does not mean every borrower qualifies for that amount.
The lender still assesses the property, income, debts, credit and complete application.
A refinance involves new underwriting.
The lender needs to assess the application under its applicable criteria.
For federally regulated lenders, uninsured mortgage refinancing is generally subject to the mortgage qualifying-rate requirements in effect at the time.
It can, depending on the amount borrowed, interest rate and amortization.
But lower monthly payments can sometimes result from extending the repayment period. That can increase the total interest paid.
Compare both cash flow and total cost.
Potentially. Debt consolidation is a common reason homeowners consider refinancing.
Whether it is beneficial depends on the interest rates, refinancing costs, repayment period and what happens to the debts after consolidation.
Mortgage financing may potentially provide access to home equity where qualification permits.
Whether using personally secured borrowing for business purposes is appropriate is a separate financial, legal and potentially tax decision.
Consult the relevant professional advisors before proceeding.
Potentially. Doing so may trigger a mortgage prepayment penalty and other transaction costs.
Those costs should be understood before deciding whether to refinance now or wait until maturity.
A refinance generally changes mortgage borrowing and places it on an amortizing repayment schedule.
A HELOC is revolving secured credit that allows you to borrow, repay and borrow again up to the approved limit.
Rates, qualification, borrowing limits, repayment requirements and risks differ.
No. A credit check is not required simply to discuss what you are trying to accomplish.
If it becomes necessary to properly assess a potential financing route, Igor will explain that before proceeding.
No. Equity is one component.
The lender still needs to assess the borrower and property under its criteria.
Before you add more debt to the house
Make sure the new mortgage improves the problem you actually want to solve.
Understand the equity. Understand the qualification. Understand the costs. Understand the long-term effect.
Then decide.
Initial consultation at no cost · No credit check required to start · Nothing submitted without your approval