Canada Mortgage Refinance Rates
A refinance cannot be default-insured in Canada, so it prices off the uninsured shelf — higher than the rate advertised for a purchase. Here is what that costs in Canada and when it still makes sense.
Who this covers
- Borrowers taking equity out for renovations, investment or debt
- Anyone breaking a term early to capture a lower rate
- Files changing amortization, or adding and removing a covenantor
What lenders look for
| 80% loan-to-value ceiling | The hard limit on a refinance in Canada. Equity above that is only reachable through a second mortgage or a private lender. |
| Uninsured pricing | Insurance is unavailable on a refinance whatever the LTV, so the rate comes off the uninsured shelf — typically 20 to 40 basis points above insured. |
| Break penalty | Leaving a fixed term early triggers the greater of three months’ interest and the interest rate differential. On a big-bank fixed the IRD is calculated off posted rates and can run to five figures. |
| Legal and appraisal | Yours to pay on a refinance, unlike a straight switch. Budget $1,100 to $2,000. |
What it costs
Every refinance in Canada prices on the uninsured shelf. The break-even question is whether the interest saved over the remaining term exceeds the penalty plus legal costs.
| Lender | Type | 5-year fixed |
|---|---|---|
| Strive Capital | Monoline | 4.15% |
| MCAP | Monoline | 4.16% |
| First National | Monoline | 4.17% |
| Merix Financial | Monoline | 4.18% |
| RFA Mortgage Corporation | Monoline | 4.19% |
Lowest five-year fixed on the uninsured shelf, 2026-08-21. Full board →
Get notified 90 days before your renewal
Your lender contacts you at 30 days, when you have no time to shop. We reach you at 90 — early enough to lock a hold and personalize your offers.
Refinance by province
Land transfer tax, minimum down payment and typical prices differ by province.
Questions
How much equity can I take out?
Up to 80% of the property value, less what you still owe. On a $800,000 home with a $400,000 mortgage that is $240,000 before costs.
Is it worth breaking my term?
Only if the interest saved beats the penalty. Get the exact penalty from your lender in writing before modelling anything — the estimate on their website is frequently wrong, and always in their favour.
Why is my refinance rate higher than the advertised rate?
Because the advertised rate is almost always insured pricing, which requires less than 20% down on a purchase. Refinances cannot be insured at all, so they price higher by rule, not by negotiation.
Have a refinance file looked at
When you are ready to do something with these numbers, we will introduce you to a licensed broker who can put the file in front of lenders. Nothing here obliges you to.
Send us the file