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The Best Mortgage Refinance Rates in Canada

Comparing mortgage refinance rates among lenders can help you save money and secure better terms for the next phase of your mortgage.

Nerdy Tip: Refinancing a mortgage involves more than seizing on the lowest rate you can find. Refinancing can trigger large prepayment penalties, which need to be considered when deciding whether it’s the right move financially.

Rates updated: April 04, 2024

Mortgage Type

Property Value

Mortgage Balance

Rate Type

Province

Mortgage Term

Lender

Lender Highlights

Rate

Payment

Term

Scotia Bank

  • Some mortgage features.
  • Good monthly pre-payment.
  • Skip a payment.
  • Good annual pre-payment.
5.49%

Fixed

$2,454

Monthly

5 yrs.

Term

Explore Now

First National

  • Strong mortgage features.
  • Very good monthly pre-payment.
  • Skip a payment.
  • Very good annual pre-payment.
5.59%

Fixed

$2,478

Monthly

5 yrs.

Term

Explore Now

Manulife Financial

  • Some mortgage features.
  • Good monthly pre-payment.
  • Skip a payment.
  • Good annual pre-payment.
5.69%

Fixed

$2,502

Monthly

5 yrs.

Term

Explore Now

Marathon Mortgage

  • Strong mortgage features.
  • Very good monthly pre-payment.
  • Skip payment not available.
  • Very good annual pre-payment.
5.69%

Fixed

$2,502

Monthly

5 yrs.

Term

Explore Now

MCAP

  • Strong mortgage features.
  • Very good monthly pre-payment.
  • Skip a payment.
  • Very good annual pre-payment.
5.69%

Fixed

$2,502

Monthly

5 yrs.

Term

Explore Now

RMG

  • Strong mortgage features.
  • Very good monthly pre-payment.
  • Skip a payment.
  • Very good annual pre-payment.
5.69%

Fixed

$2,502

Monthly

5 yrs.

Term

Explore Now

Disclaimer: These rates do not include taxes, fees, and insurance. Your actual rate and loan terms will be determined by the partner’s assessment of your creditworthiness and other factors. Any potential savings figures are estimates based on the information provided by you and our advertising partners. Mortgage Brokerage Licensed in ON #12984, BC #X301004, MB and AB. Homewise can pursue mortgage brokering activity in SK, NL, NS and NB.

Data source:

Mortgage refinance rate update: March 2024

Based on activity in the government bond market in February, there’s a chance that fixed mortgage refinance rates could decrease in March. When bond yields fall — and they’ve been trending downward for weeks — fixed rates tend to follow.

Variable mortgage rates won’t start declining until the Bank of Canada lowers its overnight lending rate. That might not happen until June. Until variable rates drop by more than a full percentage point, the stress test involved with a variable-rate refinance could prove especially challenging. 

Why are mortgage refinance rates higher?

There are various theories around why mortgage refinance rates are typically higher than purchase mortgage rates.

One is that lenders assume greater risk when they extend homeowners more credit over a longer period of time. If you refinance your mortgage, borrow against your home equity and opt for a longer amortization period, for example, it adds extra time during which you might fail to make good on your mortgage payments.

Another possible explanation is that refinances can result in lower profits for lenders. Let’s say you agree to a five-year fixed rate mortgage at 5% but are able to refinance at 3% after two years. The result is three years of savings for you, but three years of reduced earnings for your lender. Charging a higher rate on your refinance mitigates these losses. (Hefty prepayment penalties help, too.)

How to get the best mortgage refinance rate

Refinancing a mortgage requires applying for a new home loan. To be approved, the lender will put your finances under the microscope again. Before offering you the best refinance rate, your lender will want to see:

Your current lender may not approve a refinance if your credit score has decreased or you’re experiencing debt issues. That doesn’t mean you’re out of options. There are plenty of B lenders that specialize in bad credit mortgages where you may be able to get refinanced. 

Other mortgage refinance costs to consider

With all things mortgage-related, there’s more to think about than just the interest rate you’re offered. That’s especially true when it comes to refinancing, where other costs can include:

An opportunity to lock in at a lower rate will always sound enticing, but the benefits have to be weighed against the total cost to ensure you’re making the right long-term decision for your household.

Frequently asked questions about mortgage refinance rates

What are current interest rates for refinancing?

As of March 7, 2024, some lenders are offering five-year fixed mortgage refinance rates for below 5.5% on certain loans. Five-year variable refinance rates are closer to 7%.

Should I refinance to save 1% on my mortgage rate?

Shaving 1% off of your mortgage rate will reduce the interest you pay over the rest of your term. Whether you save money overall will depend on how much your prepayment penalties, legal fees and home appraisal cost you. 

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