What is Mortgage Refinance?

Mortgage Refinance refers to the process of entering into new Mortgage terms and conditions with the same or a different lender. A new loan is taken by the borrower in order to pay off his/her first loan and essentially draw up new terms and conditions. Refinancing a Mortgage generally allows the borrower to secure better terms and obtain a lower interest rate.

For borrowers with a good credit score, Refinancing a Mortgage can be a good technique to convert a Variable interest rate to a Fixed interest rate or vice versa (depending on the borrowers given situation and objective) and to also obtain a lower interest rate compared to the rate that they were receiving in their previous Mortgage loan terms and conditions.

Some of the benefits of Refinancing include debt repayment, obtain funds for large investment purchases, lower interest rates, lower monthly Mortgage payments, improving credit score and paying off CRA debts.


The process of Mortgage Refinancing is similar to that of a Home Purchase Mortgage since lenders need to validate and verify the borrower’s income and credit score criteria.

To Refinance a Mortgage, the borrower must complete a Mortgage Application Form and submit it to the Mortgage Broker that he/she is working with along with any supporting Mortgage documents that the Mortgage Broker has requested.

  • A property appraisal will be ordered by the Mortgage Broker and an appraisal report confirming the current market value of the property will be prepared by the appraiser and provided to the Mortgage Broker.
  • The appraisal report and all of the other important supporting documents/details will be shared with the lender.
  • The lender then decides what percentage of the appraised property market value they are willing to loan out to the borrower.
  • The balance owed on the original Mortgage is subtracted and the original Mortgage will be paid off in full and discharged.
  • The remaining balance is then loaned out to the borrower as the net advanced amount of the loan.
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Borrowers can opt for Refinancing for a variety of reasons. These reasons can include:

  • Cashing out Home Equity
  • Shortening or lengthening loan durations
  • Lowering Mortgage rates
  • Changing loan structures
  • Removing the Mortgage insurance requirements

While the terms and conditions of Refinancing vary from lender to lender, most of them require the borrower to maintain his/her original Mortgage for at least 12-months before Refinancing it. Therefore, it is advisable to read the terms and conditions of the original Mortgage agreement carefully and be aware of any restrictions with regards to Refinancing.


The cost of Refinancing a Mortgage can differ according to lender, loan amount, rate of interest and credit score of the borrower.

Generally speaking, the cost of Refinancing a loan includes appraisal fees, Title transfer fees, Insurance and Taxes and closing cost fees such as: Lender/Brokerage/Legal fees. In total, these costs can generally add up to 5-10% of the loan’s value (depending on the type and size of the Mortgage loan).

To keep the cost of Refinancing down, many borrowers get their loans Refinanced from their original lender.

Hamilton, Ontario

I had a very pleasant experience working with Shawn Sef at Equity Mainly Matters Loans. We contacted Shawn looking for help in order to pay off our high interest credit card debts. Shawn made the process very easy for us by explaining the Mortgage loan details for the Debt Consolidation Mortgage Solution which he recommended for us. Shawn was actively present every step of the way and was very knowledgeable. I will definitely recommend Shawn to my peers due to his knowledge, professionalism and expertise.

Brampton, Ontario

Shawn is extremely passionate about his job. Shawn always demonstrates a positive and professional attitude. His easy going and friendly personality always makes the experience of working with him fun and stress free. Shawn made the entire Mortgage loan process very simple for me to which I’m thankful for. Shawn is very proactive and updates me on a regular basis in regards to my file.

Markham, Ontario

Me and my husband had never worked with a Mortgage Broker before. I needed to consolidate all of my debts. I was paying high monthly interest fees to my creditors and my bank informed me that I couldn’t get approved with them because of my low credit score. Shawn did an excellent job by helping me consolidate and pay off all of my various high interest debts. I’m now debt free. My credit score has improved and I don’t owe creditors any monthly high interest payments. We went from paying $1,650 month towards our credit card debts and loans, to now paying only $520 month which helped us build up a good savings. Shawn rescued us from our creditors and helped us save an extensive amount of money for our families future.


As a first time home buyer, we required a Mortgage broker who was willing to be very patient with us and to explain every detail of the Mortgage loan process and provide us with as much information as possible. Shawn informed us of the exact required down payment amount (based on the types of lenders that we qualified for), fees, closing costs, Land Transfer tax etc. Shawn was very good in providing us with accurate rates, figures and calculations which we realized we could afford the monthly Mortgage payments and make the Home Purchase work. One other important factor was that Shawn kept on top of our file by updating the progress every step of the way which was very important to us. Shawn is very proactive which we appreciated!

Toronto, Ontario

Shawn helped our family obtain a low rate 2nd Mortgage from a Private Lender. Banks turned us down as we failed to meet their requirements for the stress test, income and credit criteria. However, Shawn was able to find various Private Lenders/Investors that were interested in making us an offer and we ended up taking a great offer for a 2nd Mortgage which made the most sense for us. We will definitely refer our family and friends to Shawn in the near future. I can’t say how much I appreciate all the time and effort Shawn put into our file.

Mississauga, Ontario

Shawn demonstrates excellent customer service skills. He’s always very quick to respond to my emails and calls. Shawn helped me get approved twice in the past year alone and I hope to work with him again in the near future. Shawn was very friendly, attentive and dedicated his time and effort by providing me with solid knowledge, expertise and advice which in return helped the process of purchasing my first home very easy and stress free. Shawn even followed up on my behalf with my lawyer in order to finalize all the details. I would highly recommend his services.

Ottawa, Ontario

From the first time I spoke with Shawn Sef, I felt comfortable and at ease which was due to his calm and patient personality and attitude. He was also very understanding and caring to our current situation and needs by providing the best course of action for us to take which made the most sense for our family. Shawn is very knowledgeable within the mortgage field and delivered exactly what he said he would. He even provided us with accurate closing/funding dates from day one. I would definitely recommend Shawn Sef to any borrower looking for a good
Mortgage broker.

Toronto, Ontario

Shawn had helped my wife and I obtain a 2nd Mortgage from a Private Lender last year. We used the majority of the Mortgage loan proceeds to help renovate/upgrade our home. Once the refurbishments had concluded, we ordered a new appraisal and noticed that our house value had increased substantially. The following year, Shawn helped us refinance both our Institutional and Private Mortgages into a new low rate, 1st Mortgage with an A Lender (Bank) which is going to help us save an extensive amount of money in monthly payments moving forward. I’m very thankful for Shawn’s knowledge, skills and expertise within the mortgage industry which ended up helping us save thousands of dollars.