Step-by-step Guide to Remortgaging Your Home in Canada

Welcome to, your reliable navigator through the landscape of Canadian home financing. In today’s feature, we unpack the process of remortgaging—a significant financial move that can have a range of benefits for homeowners. Whether you’re looking to tap into your home’s equity, find a better interest rate, or consolidate debt, this guide will walk you through the essentials.

1. Evaluate Your Reasons for Remortgaging

  • Why Remortgage? From better interest rates to funding large expenses or even restructuring existing debts, homeowners have diverse reasons to remortgage. Start by pinpointing your main objectives, as this will guide subsequent decisions.

2. Review Your Current Mortgage Terms

  • Understand Penalties: Many mortgages have clauses that impose penalties for breaking terms early. Familiarize yourself with any potential charges or limitations.
  • Check Your Mortgage Type: Some mortgages, particularly fixed-term ones, might have restrictions on early repayment.

3. Assess the Equity in Your Home

  • Home Appraisal: The amount of equity in your home (the home’s current value minus what you owe) can determine the remortgaging options available to you. Consider getting a professional home appraisal for an accurate valuation.

4. Shop Around for the Best Deals

  • Research Various Lenders: Don’t just stick to your current provider; explore offers from various banks, credit unions, and other lenders.
  • Use Mortgage Brokers: Brokers have access to a wide array of lenders and might find you deals not readily available to the general public.

5. Understand the Costs Involved

  • Remortgaging isn’t free. From legal fees to valuation charges and potential penalties from your existing lender, ensure you account for all associated costs.

6. Apply for the New Mortgage

  • Documentation: You’ll typically need proof of income, details of your current mortgage, a valuation of your property, and a summary of monthly expenses.
  • Credit Check: As with your initial mortgage, lenders will review your credit history to determine your reliability as a borrower.
  • Approval: Once your application is approved, you can agree on the terms and proceed to the next step.

7. Legal Formalities

  • Hire a Solicitor or Notary: In Canada, you’ll need legal services to handle the remortgage process. They will coordinate between your old and new lenders, ensuring the transition is seamless.
  • Review the Terms: Before finalizing, meticulously review the new mortgage terms. Ensure they align with your financial objectives and that you understand any associated fees or penalties.

8. Secure Your New Mortgage

  • Closing: This involves finalizing the paperwork, having funds from the new mortgage pay off the old one, and beginning your relationship with your new lender.
  • Celebrate: You’ve successfully navigated the remortgaging process!

9. Regularly Review Your Mortgage Situation

  • Stay Proactive: Just because you’ve remortgaged once doesn’t mean you should stay static. Regularly assess your financial situation, and keep an eye on the market. There might be opportunities down the line to refine your setup further.


Remortgaging can seem daunting, but with the right approach and resources, it’s a manageable journey. This endeavor is more than just switching lenders—it’s a proactive step in managing your finances and making your home’s value work for you. Armed with this guide and the wealth of resources at, you’re well on your way to making informed decisions about your home’s financing. Safe travels on your remortgaging journey!

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