Should I refinance instead of renewing?
Real Mortgage Associates · FSRA #10464
Refinance if you need to take equity out, consolidate high-interest debt, or extend amortization. A straight renewal keeps the loan as-is and is faster, cheaper, and stress-test-exempt. Refinancing re-triggers the OSFI stress test for uninsured borrowers.
The renewal-vs-refinance decision is entirely about what you need from the loan, not the rate. Refinance rates and renewal rates are typically identical from the same lender at the same LTV. If nothing about the loan needs to change, a renewal (or renewal-switch) is always cheaper and simpler.
Common reasons to refinance at renewal: paying off $30K+ of credit-card debt at 20%+, funding a major renovation, extending amortization to lower monthly payment, or removing a co-borrower after separation.
Jay will review your specific situation and reply within one business day — free.
Jay Klair, Mortgage Agent Level 2 (M09000869) — Real Mortgage Associates, FSRA #10464, part of the DLGC Group of Companies · 5675 Whittle Rd, Suite 100, Mississauga, ON L4Z 3P8