Consolidating debt, funding renovations, freeing up cash. Refinancing replaces your current loan with a new, usually larger one. Describe your goal; a broker registered with the AMF calls you back and explains what it actually involves.
What refinancing allows, and how far
You can generally refinance up to 80% of the property’s value, excluding mortgage insurance. The gap between that ceiling and your current balance is what can be released. A recent appraisal is usually required.
The penalty: the first number to get
Refinancing mid-term triggers a penalty, calculated on three months’ interest or on the interest rate differential depending on your contract and loan type. The first thing a broker does is help you obtain that figure from your lender, before any comparison.
Consolidating debt: the real arithmetic
Rolling high-rate debt into a mortgage often lowers the monthly payment. But it spreads short-term debt across the remaining amortization, which can cost more in total. The broker shows you both numbers, not only the pleasant one.
Refinance, HELOC, or loan?
Three different tools for one apparent need. A line of credit offers flexibility, a refinance a generally lower rate, a personal loan no charge on the property. The authorized person compares all three with you.
The effect on your amortization
Refinancing often resets amortization to a longer horizon. That is what lowers the payment, and it is also what raises the total cost. This consequence must be explicit before you decide, not discovered afterwards.
Why no rate is shown here
A refinance rate depends on the loan-to-value ratio, the use of funds, your file, and the lender. Showing a number without those would be misleading. The broker presents real options after the conversation.
What happens after you submit
Your request goes only to the authorized mortgage team. A broker calls you back, obtains your penalty with you, and compares. You remain free not to proceed.
Frequently asked questions
Can I refinance without a penalty?
Yes, at renewal. Mid-term, a penalty almost always applies. The broker weighs the penalty against the expected gain before recommending anything.
How much can I release?
It depends on the property’s current value, your balance, and the lender’s rules. The usual ceiling is 80% of value. An appraisal is generally required to establish it.
Does refinancing affect my credit report?
Completing this form triggers no check. A credit inquiry is made later by the lender, if a file is opened, with your consent.
Is consolidating my debt this way a good idea?
That depends entirely on your situation and what you do next. CompareTaux produces no automated recommendation: an authorized person reviews the numbers with you and explains the option’s limits.
Do I need documents for the request?
No. No document is requested publicly. The broker will tell you what is needed if a file is opened.