With interest rates shifting, inflation settling, and home values remaining strong in many areas, many Canadian homeowners are asking the same question in 2025: “Is it a good time to refinance?”
Refinancing can be a smart move — whether you’re looking to lower your monthly payment, access your home’s equity, or consolidate debt. But it’s not always the right choice for everyone. Here’s what you need to know before making the decision.
🔁 What Is Mortgage Refinancing?
Refinancing means replacing your existing mortgage with a new one — typically with new terms, a new interest rate, or a different lender. It’s like starting over, but often with better options that fit your current goals.
Most people refinance to:
- Lower their interest rate
- Reduce monthly payments
- Switch from a variable to a fixed rate (or vice versa)
- Access home equity for renovations, investments, or debt consolidation
- Change the length of their mortgage term
✅ Top Reasons to Refinance in 2025
1. 📉 Lower Interest Rates Are Returning
After the rapid rate hikes of 2022–24, we’re beginning to see some relief. If your mortgage rate is still in the 5–6% range, refinancing could save you thousands over the life of your loan.
2. 🏡 Your Home Value Has Gone Up
Home prices have remained resilient in many parts of Canada. If your home has appreciated significantly, you can access that equity through a refinance — sometimes up to 80% of the home’s appraised value.
3. 💳 Consolidate High-Interest Debt
Credit card interest can be 18–25%. If you have debt, refinancing to pull out equity at a lower mortgage rate can help you eliminate that high-interest burden and regain financial control.
4. 🛠️ Fund Major Expenses or Renovations
Need a new kitchen, basement, or roof? A refinance can fund these projects affordably — and potentially boost your property value even further.
5. ⏳ Shorten Your Mortgage Term
If you’re earning more now than when you first bought your home, refinancing into a shorter term can help you become mortgage-free faster.
⚠️ When You Should Think Twice About Refinancing
Refinancing isn’t always the right move. Consider these factors:
- Prepayment Penalties: Breaking your mortgage early could cost thousands, especially if you’re with a big bank.
- Closing Costs: Appraisal, legal, and admin fees can add up (though some lenders offer cashback or no-fee options).
- New Stress Test: You’ll need to requalify under the current rules — which may be stricter than before.
Tip: A mortgage broker can calculate your break-even point — when the savings from refinancing outweigh the cost.
👨👩👧👦 Is Refinancing Right for You?
You might want to explore refinancing in 2025 if:
- Your rate is over 5%
- You’ve built up significant equity in your home
- You have high-interest debt and want to simplify payments
- You need funds for renovations, tuition, or business capital
- Your household income or goals have changed since your original mortgage
🤝 Why Work With Mortgages by Gill
At Mortgages by Gill, we make refinancing easy to understand and stress-free. We compare dozens of lenders — including major banks, credit unions, and flexible alternative lenders — to find the best deal for your needs.
We help with:
- Penalty analysis and cost breakdown
- Equity take-out planning
- Rate negotiations and lender matching
- Paperwork, document collection, and closing coordination
Whether you’re looking to save money or fund your next big move, we’ll make sure you refinance smart — not just fast.
📞 Ready to Explore Your Refinance Options?
Let’s review your numbers and help you make the most informed decision. No pressure, just honest advice.
Contact Mortgages by Gill today:
- 📞 Phone: (780)245-0675
- 📧 Email: mortgages@harkiratgill.com
- 🌐 Website: www.harkiratgillmortgages.ca
- 📍 Serving Edmonton, Alberta & clients across Canada