Refinancing

Definition

Replacing or changing an existing mortgage to access cash, combine debts, or change the conditions before the term ends. In Canada the new loan can go up to 80% of the property’s value. Example: a property valued at $500,000 with a $300,000 balance. The maximum is $400,000 (80%), so $100,000 of room before costs. From that room, subtract the penalty if the term has not matured, the notary and appraisal fees, and expect the new payment to be spread over more years. The net amount that reaches your account is always smaller than the room.