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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: June 03, 2024

Mortgage Type

Property Value

Mortgage Balance

Rate Type

Province

Mortgage Term

Lender

Lender Highlights

Rate

Payment

Term

Meridian

  • Strong mortgage features.
  • Very good monthly pre-payment.
  • Skip payment not available.
  • Very good annual pre-payment.
4.49%

Fixed

$2,221

Monthly

5 yrs.

Term

Explore Now

Meridian

  • Strong mortgage features.
  • Very good monthly pre-payment.
  • Skip payment not available.
  • Very good annual pre-payment.
4.59%

Fixed

$2,244

Monthly

5 yrs.

Term

Explore Now

Manulife Financial

  • Some mortgage features.
  • Good monthly pre-payment.
  • Skip a payment.
  • Good annual pre-payment.
4.84%

Fixed

$2,301

Monthly

5 yrs.

Term

Explore Now

First National

  • Strong mortgage features.
  • Very good monthly pre-payment.
  • Skip a payment.
  • Very good annual pre-payment.
4.84%

Fixed

$2,301

Monthly

5 yrs.

Term

Explore Now

Neo Financial

  • Strong mortgage features.
  • Very good monthly pre-payment.
  • Skip payment not available.
  • Very good annual pre-payment.
4.84%

Fixed

$2,301

Monthly

5 yrs.

Term

Explore Now

TD Canada Trust

  • Some mortgage features.
  • Best monthly pre-payment.
  • Skip a payment.
  • Good annual pre-payment.
4.84%

Fixed

$2,301

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: October 2024

Based on activity in the government bond market in October, fixed mortgage refinance rates aren’t likely to decrease in the short-term. When bond yields increase — and they’ve trended upward for much of the month — lenders are more likely to increase their fixed rates than lower them.

Variable mortgage rates are set for another decrease when the Bank of Canada delivers what’s expected to be an oversize cut to the overnight rate on October 23. A 50-basis point cut would bring the country’s lowest variable rates down to around 4.8%.

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 July 25, 2024, some lenders are offering five-year fixed mortgage refinance rates for below 5% on certain loans. Five-year variable refinance rates are still 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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