A Refinance is when you withdraw money out of a property that you already own.
20% equity needs to remain in the home. So if you take the value of your home and multiply by 80% - that is the maximum mortgage/s you can have against that home.
How much equity can I potentially access in a Refinance?
a) the home value * 80% = x
b) x - existing mortgage/loans against home = y
If "y" is positive, that is the amount that may be drawn out. (oac)
If "y" is negative, it is not time (yet) to do a refinance.
REFINANCING YOUR MORTGAGE
How much does a mortgage refinance cost?
This involves new legal documents and title re-registration; either can be used to facilitate:
a) FCT* or FNF** which are not lawyers, but they are able to process the legal documents for refinances. I would budget $550-$750 for this.
b) If a lawyer needs to complete the transaction I would budget approx. $1,200-$1,500. (Nikole will advise your options)
The other cost will be for an appraisal which is approx. $300.
*FCT - First Canadian Title
**FNF - FNF Canada
If you have any questions while completing the application, please don’t hesitate to reach out.