Today’s Mortgage Rates updated as of April 15, 2026 10:05 am
5-year fixed*
5-year Variable*
*Insured loans. Other conditions apply. Rate in effect as of today.
Refinancing your mortgage can be a smart financial decision, helping you reduce monthly payments, consolidate debt, or access your home equity for major expenses. At Citadel Mortgages, we specialize in refinancing solutions tailored to your financial goals, offering competitive rates and personalized advice.
A mortgage refinance renegotiates your mortgage terms. You are offered the best interest rate based on your credit and current rates and have new terms. In Canada, refinancing requires applicants to pass a mortgage stress test to confirm that they can afford the current market payments. It also allows you to borrow up to 80% of the value of your home. However, breaking the terms of your existing mortgage contract can cost you thousands, depending on your mortgage conditions and timing.
When you refinance your mortgage, the bank uses the new loan amount to pay off your current mortgage and then replaces it with your new mortgage. Sometimes, your mortgage balance increases if you include an equity loan. You can leverage lower interest rates, different terms or switch your mortgage type from fixed to variable or vice versa.
A mortgage refinance in Canada “breaks” your existing mortgage contract and uses the new mortgage to pay off your first mortgage’s balance. Your new mortgage then provides what is hopefully better terms and conditions with a lower interest rate to save you money over the life of your mortgage. You will face penalties if you have a closed mortgage based on the amounts in your contract. Your new payments then kick in based on your new payment schedule, new principal, amortization, and interest rates.
Canadians can refinance their mortgages to borrow up to 80% of the value of their home. For example, if your current mortgage is 50% of your home’s value, you can borrow up to 30% to reach 80% of your home’s value.
Mortgage brokers play a pivotal role in helping Canadians find tailored financing options, providing expert advice, and navigating the often complex mortgage market.
For more detailed information on mortgage types, costs, and rights, consult the Government of Canada – Financial Consumer Agency of Canada (FCAC).
These rates are applicable to purchase and refinance deals with a purchase price of over 1 million dollars and a 25-year or 30-year amortization period. As of Dec 15th 2024, the purchase price increased ro 1.5 million. They are specifically for uninsurable mortgages with a loan-to-value ratio of up to 80%. Additionally, these rates apply to uninsurable transfers with a maximum loan-to-value ratio of 80%.
Mortgage refinance rates tend to be higher than new homes, renewals, or transfers because they also tend to be riskier if you borrow more money when you refinance. Also, lenders lose money if you negotiate a lower rate, and they want to recoup as much as they can.
Mortgage refinance costs vary depending on your mortgage and lender. Penalties and fees can include:
Mortgage prepayment penalties are based on your mortgage type. For example, variable-rate closed mortgages charge three months of interest to refinance. In comparison, fixed-rate closed mortgages charge the greater of three months of interest or the difference between interest on your current mortgage rate and the interest on a new mortgage for the same period remaining on your mortgage. Also, if you have a fixed-rate closed mortgage, you will pay more penalties than someone with an open mortgage that pays zero penalties.
It depends. Good times to refinance include:
Bad times to refinance include:
Mortgage renewals take place at the end of your mortgage term, which is typically five years. You don’t pay any penalties for mortgage renewals, and you keep the same terms as your original mortgage with the same lender. Although the terms are the same, you are offered the current mortgage rates, which can be higher, lower, or the same as your current interest rate. At the time of renewal, you cannot increase your mortgage amount to use equity as a loan.
A mortgage refinance is done before your mortgage term ends. As a result, in most cases, you will pay penalties and/or fees. However, you will often get better conditions and interest rates and can borrow money that is added to your newly negotiated mortgage payments.
Home Equity Lines of Credit (HELOC) leverage home equity but provide a revolving credit line you can access when you need extra money. A mortgage refinance is a one-time event providing a lump-sum amount. Your credit limit is based on up to 65% of your home’s value if your mortgage is paid off or up to 80% with a mortgage.
One of the problems with a HELOC is that rates are almost always variable, which can be a risk when interest rates rise. Refinancing allows you to choose your preferred type of mortgage, whether fixed or variable and offer lower interest rates than HELOCs.
Pros of mortgage refinance
Cons of mortgage refinance
Mortgage refinancing can be a little overwhelming sometimes. All day we see a lot of advertisements from banks and lenders with today’s lowest mortgage interest rates. However, lower rates don’t always mean that it’s a better mortgage for you. Using a mortgage broker for mortgage refinancing can eliminate the confusion and ensure you fully understand what the new mortgage rules are and how they can impact your new mortgage refinance.
Our expert Mortgage Brokers at Citadel Mortgages are trained, correctly, to understand your current financial situation, while also gaining information regarding your future financial goals. This is very important as it helps us understand which type of mortgage product, and terms to seek for our clients.
These Documents will be required to in order to close your mortgage refinancing needs:
80% of the value of your home.
You should have at least 20% equity in the property.
You will likely see a decreased rating at first. Within months it will go back up and even improve as you lower your debt amount and/or your monthly payments.
The best reasons to refinance include:
Most Canadian lenders stick to a “seasoning” period of six months before they are willing to refinance.
As long as the market value doesn’t decrease, your home’s equity remains intact.
Some lenders might be willing to refinance if you have a good credit rating.
While 33% of non-homeowners believe they’ll never own*, our Citadel mortgage brokers are 100% confident they can make it happen. How? With our expert advice and guidance.
(5-years interest savings with Citadel Mortgages)**
(Interest savings with Citadel Mortgages)
(5-years interest savings with Citadel Mortgages)**
(Interest savings with Citadel Mortgages)
| Year | Average Fixed Rate (%) | Average Variable Rate (%) |
|---|---|---|
| 2019 | 3.49% | 2.89% |
| 2021 | 2.89% | 2.00% |
| 2023 | 5.25% | 4.75% |
| 2024 | 5.50% – 6.25% | 5.10% – 5.75% |
Key Insight: Rates have risen significantly since 2021 due to inflation control measures by the Bank of Canada.
Refinancing your mortgage is a strategic move to save money, access equity, and align your financial plans with your goals. At Citadel Mortgages, we make the process simple and stress-free, ensuring you get the best refinancing solution for your needs.
Understanding the differences between short-term and long-term mortgage options is key to making an informed decision. By evaluating your financial situation, goals, and market conditions, you can select a mortgage product that aligns with your needs.
At Citadel Mortgages, we specialize in helping Canadians navigate the complexities of mortgage rates and terms. Whether you’re looking for a 6-month fixed rate, a 5-year variable, or something in between, our team is here to provide personalized guidance and access to the best rates in Canada.
Our clients always come first. Our goal is to help you get the best advice and mortgage solutions for your needs. Citadel Mortgages was formed to help you achieve your financial home success, so allow us to help you today. Please speak to one of our mortgage agents today!
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