There are a number of different ways to determine the estimated market value of your home. For most mortgage transactions a formal appraisal is required and the most reliable source of value.  In insured mortgage situations, whether a purchase or a transfer under insurable terms, the insurer (ie: CMHC) will rely on internal tools that assess valuation based on recent sales data. Online tools such as house sigma also provide a good estimate of value as an average although will not capture major improvements you may have made to your property.  Your mortgage broker/agent also has access to online tools that provide a fairly accurate estimation of value.

While you should only ever refinance your home with good reason, there are no rules that limit how often you can refinance. Lenders, however, will typically set a limit. Lenders will typically limit a refinance opportunity after a mortgage has been on repayment for one full year.  There are exceptions to this rule but the reason for same must be a valid one ie: separation/divorce where one spouse is buying the other out, completion of a construction/major renovation project.  In circumstances where access to equity is required and you have not met the 12 months repayment criteria other options are available to access the equity in your home.  A mortgage broker is your best source for guidance.

Renewing your mortgage means you wish no change to the renewing mortgage amount or amortization.  All lenders will extend a renewal to clients who have kept their mortgage in good standing without the need for a reapplication.  In this case a simply tick by the rate and term selected and signature will suffice.  At renewal it is always prudent to check in with your mortgage broker to see whether more favourable terms are available to you via a “transfer”.  In this scenario, nothing changes with the mortgage or amortization simply a re-application with the new lender should they have more favourable options than what your current lender is offering.  In a transfer situation while there is a re-application there are no costs involved as the mortgage “moves in kind” to the new lender.

When you refinance, you are paying out your existing mortgage in order to negotiate a new mortgage loan agreement. This is usually because you want to access the equity in your home or lower other borrowing costs. Appraisal fees and legal fees would apply.

When interest rates fall, the possibility of getting a lower mortgage rate is a strong reason to consider refinancing if you need additional funds. A refinance should be considered at any time – regardless of rate – if there is a requirement of funds for better cash flow or to realize prudent borrowing for renovations, debt consolidation, buying an investment property and a whole myriad of other reasons that tapping equity will accomplish.  Speaking with your mortgage broker can help navigate the pros and cons as well as itemize any costs associated with same.  Cashflow is always King so should be the predominant and overriding consideration.