Mortgage refinancing locks in today's lower rate, frees up equity, and consolidates high-rate debt — all in one move. The average Canadian who refinanced in the last 12 months saves $3,744/yr. Run the numbers below in 30 seconds.
If anyone has told you these, they're costing you thousands. Here's the truth — with the math.
MYTH
"Refinancing always saves money."
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TRUTH
Only if your rate drops by 1%+ AND you have 24+ months left. Below that, IRD penalty eats the savings. Run the break-even math first.
MYTH
"Penalty is just 3 months of interest."
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TRUTH
For fixed-rate mortgages, you pay the GREATER of 3-months interest OR IRD. IRD can be $15,000-30,000 on a $500k mortgage. Get the exact payout from your lender before deciding.
MYTH
"I should refinance with my current bank."
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TRUTH
Big-6 banks rarely offer their best rate to existing customers. A broker with access to 30+ lenders typically beats your current bank by 0.20-0.40%. On $400k, that's $1,600-3,200 saved per year.
MYTH
"I have to wait until renewal."
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TRUTH
Renewal is the cheapest time (zero penalty) but not the only time. If today's rate is more than 1% below your contract, refinancing mid-term often wins despite the penalty. The math is on our calculator above.
MYTH
"Refinancing hurts my credit."
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TRUTH
A single hard pull dips your score 5-10 points for 60-90 days, then it bounces back. Shopping multiple brokers within 30 days counts as ONE inquiry per credit bureau scoring. Don't let credit-impact fear cost you $20,000.
★ VERIFIED HOMEOWNER REVIEWS · 4.8 ★ AVG ★
Real reviews from Canadians who just refinanced
Pulled from verified borrower reviews this quarter. Different rates, different reasons — every one a real saving.
"
We thought we had to wait until renewal in 2027. Our broker showed us we'd save $18k over the remaining term even after penalty. Refinanced at 4.09% — done in 28 days.
Sarah & MikeBurlington, ONLocked at 5.39% in 2022 · 22 months into term
LIFETIME SAVINGS$18,400
PER MONTH$312
"
Rate volatility was killing me. Switched from variable to a 3-yr fixed at 4.25% — payment dropped $205/mo and I can finally budget.
JamesVancouver, BCVariable rate at Prime + 0.85% = 5.30% · refinanced to fixed
LIFETIME SAVINGS$12,200
PER MONTH$205
"
We weren't even chasing a lower rate. We rolled $42k of high-interest debt into the mortgage and our total monthly payment dropped $824. Game changer.
Aaliyah & JordanCalgary, ABConsolidated $42k of credit card + auto debt into the mortgage
LIFETIME SAVINGS$9,800
PER MONTH$824
★ BROKER vs BANK · WHO WINS ★
Where you refinance matters as much as when.
YOUR BANK
The expensive default
Shops 1 lender (themselves)
Quotes their posted rate first
You're a captive customer · no leverage
Branch hours only · 30-45 day timeline
Renewal letter rate is rarely their best rate
Avg rate offered4.65%
vs
A MORTGAGE BROKER
The math-positive move
Shops 30-50 lenders simultaneously
Gets the actual market floor rate
Paid by lenders · free for borrowers
Online application · 20-30 day timeline
Federally licensed · fiduciary to YOU
Avg rate offered4.19%
0.46% rate gap = $1,840/yr on a $400k mortgageThat's $9,200 across a 5-year term · before any other broker negotiating wins.