How to Refinance Your Mortgage in Toronto: 2025 Guide
- Seventy Seven Park
- 4 days ago
- 3 min read
Are you asking any of these questions?
Should I refinance my mortgage in Toronto right now?
How much equity can I access from my home?
What are the costs involved in refinancing in Ontario?
If so, you're in the right place. This guide answers all your refinancing questions using current Ontario-specific rules, rates, and examples. It’s written for homeowners who want clear answers without sales jargon.
What Does It Mean to Refinance a
Mortgage?
Refinancing your mortgage means replacing your current mortgage with a new one. People refinance to:
Get a lower interest rate
Access home equity for renovations or debt
Consolidate loans into one payment
Switch from a variable to a fixed rate
Change their amortization schedule
Who Should Refinance?
You should consider refinancing if:
Your current rate is more than 1 percent above today’s offers
Your home’s value has gone up and you want to borrow from that equity
You want to consolidate high-interest debt
You are nearing the end of your mortgage term
You want to avoid paying more at renewal
If you’re unsure whether it makes sense, run a side-by-side comparison. We do that for free. Contact info is at the bottom.
How Much Equity Can You Access?
Lenders in Ontario typically allow you to borrow up to 80 percent of your home’s appraised value.
Example:
Home value: $1,000,000
Current mortgage: $630,000
Maximum loan (80%): $800,000
Available equity: $170,000
This amount could be used for renovations, debt repayment, investments, or another property purchase.
Use this Ratehub refinance calculator to estimate your new payment.
What Are Current Refinance Rates in Toronto?
As of August 2025:
5-year fixed: 4.09% to 4.79%
5-year variable: 4.67% to 5.29%
Private lenders: 6.5% to 11%
These rates come from Ontario lenders and brokers. If your current rate is above 5.5%, consider reviewing your options.
What’s the Process to Refinance?
Refinancing in Toronto involves:
Reviewing your current mortgage
Checking your income and credit
Getting a home appraisal
Submitting your refinance application
Closing with a lawyer
This takes around 3 to 4 weeks.
What Are the Costs to Refinance?
Here’s what you should budget for:
Prepayment penalty: Often the biggest cost
Fixed mortgage: IRD or 3 months’ interest
Variable mortgage: Usually 3 months’ interest
Appraisal: $300 to $600
Legal fees: $700 to $1,500
Title insurance: $250 to $500
Discharge fee: $200 to $400
New lender admin fees: $300 to $1,000
Interest adjustment: Varies by closing date
You should always get a full cost breakdown before signing anything. We provide this in all proposals.
Is It Better to Refinance or Renew?
Situation | Refinance | Renew |
Want to lower your rate | ✔ | ✔ |
Need to borrow equity | ✔ | ✘ |
Want to consolidate debt | ✔ | ✘ |
Near term-end with no changes | ✘ | ✔ |
Renewing is simpler, but refinancing gives you control over how your mortgage works for you.
Should You Use a Bank or a Broker?
Banks only offer their own mortgage products. Brokers compare rates and features across multiple lenders, including private and alternative options.
If your income is self-employed, your credit is non-traditional, or you want access to more flexible lending, a broker is your best option.
Frequently Asked Questions
Q: What is the average refinance rate in Toronto right now?
A: Fixed rates range from 4.09% to 4.79%. Variable rates range from 4.67% to 5.29%. Private lenders are higher.
Q: Can I refinance without breaking my mortgage?
A: Only if your term is ending or your lender offers a blend-and-extend option. Otherwise, you pay a penalty.
Q: What credit score do I need to refinance in Ontario?
A: Most A lenders prefer 680 or higher. B lenders work with scores as low as 550.
Q: How do I get a refinance quote?
A: You can send your current mortgage statement to a broker and ask for options. We do this in under 48 hours.
SO, Should you Refinance Your Mortgage in Toronto? Request a Refinance Quote Today
At Seventy Seven Park, we structure smart refinance strategies based on your goals. We work with banks, credit unions, and private lenders across Ontario. No pressure. No jargon. Just numbers that make sense.
📩 info@seventysevenpark.ca 📞 416.455.3800 We’ll give you two or three side-by-side options, including rate, penalty, equity access, and payment details.