Mortgage Refinancing
Make your home equity work with a clear plan
Thinking about consolidating debt, funding renovations or changing your mortgage payments? Refinancing can open up options—but the right decision depends on the complete cost and what you want to accomplish.
I’m Tyler Shymkiw, PhD, a Mortgage Broker with Thrive Mortgage. Based in Maple Ridge and serving clients across British Columbia, I help homeowners compare their current mortgage with available alternatives, understand the trade-offs and decide whether a refinance makes sense.
Discuss your refinance options · Call 604-868-6495
What is mortgage refinancing?
Refinancing replaces or restructures your existing mortgage. It may let you borrow against your home’s equity, change your repayment period or move to a different lender or mortgage product, subject to approval.
A renewal continues your mortgage at the end of its term. A refinance usually involves more substantial changes, such as additional borrowing. If you simply want to compare lenders at renewal, we can review whether a switch would meet your needs without a refinance.
When could a refinance help?
Consolidate higher-interest debt
Combining eligible debts into your mortgage may reduce monthly payments and simplify your finances. We’ll compare the interest, fees and repayment timeline. Spreading debt over a longer period can increase the total interest you pay, even at a lower rate, and debt secured against your home puts the property at risk if payments are missed.
Learn about debt consolidation.
Renovate or adapt your home
Equity may help fund repairs, upgrades or changes that make your home work better for your family. We can compare refinancing with other financing approaches, especially if your existing mortgage has a favourable rate or a significant penalty.
Adjust your monthly payments
A different mortgage structure or longer amortization may improve cash flow, depending on your qualifications and lender options. Lower payments should be weighed against the effect on your total interest and the date you become mortgage-free.
Plan for a major life change
A separation, ownership change or other financial transition may require a new mortgage plan. I can help assess the financing alongside the legal and other professional advice your situation requires.
How much equity could you access?
Home equity is the value of your home minus the debt secured against it. Many conventional refinance options generally allow total borrowing up to 80% of the lender-approved property value, subject to qualification and program requirements.
For illustration, if a lender values your home at $1,000,000, 80% is $800,000. With a $550,000 existing mortgage and no other secured debt, that leaves $250,000 of potential borrowing room before fees and adjustments. This is an illustration, not an approval or a promise of available funds.
Your income, credit, property and existing obligations also affect what you can borrow. A BC Assessment value alone does not establish the value a lender will accept.
Compare the full cost before making a change
A lower rate or payment is only part of the decision. Before you refinance, we’ll review:
- Any penalty for paying out your current mortgage early.
- Appraisal, legal, discharge and registration costs, plus applicable lender or broker fees.
- The new balance, interest rate, payments and repayment period.
- Whether fees are paid upfront or added to borrowing, where permitted.
- The cost of keeping your existing mortgage or waiting until renewal.
- Product features, including prepayment privileges and future flexibility.
Sometimes keeping your current mortgage is the better choice. My role is to explain the numbers and help you make an informed decision.
Worked example: is a lower payment actually a saving?
Consider a homeowner with a $500,000 mortgage, 20 years left to repay it and three years remaining on a fixed term. A refinance would replace that mortgage and add $8,000 in costs: an assumed $6,000 prepayment penalty and $2,000 for other closing expenses. No cash is taken out.
Illustration only: the rates and fees below are hypothetical, not current offers or a lender quote. Financing fees is subject to approval. Both options are compared over the same 36 months.
| What we compare | Keep current mortgage | Refinance |
|---|---|---|
| Starting mortgage balance | $500,000 | $508,000, including fees |
| Assumed fixed rate | 5.20% | 4.50% |
| Remaining amortization | 20 years | 20 years |
| Monthly payment | $3,339.83 | $3,202.46 |
| Total payments over 3 years | $120,234 | $115,288 |
| Interest over 3 years | $73,774 | $64,734 |
| Penalty and other closing costs | $0 | $8,000, financed |
| Interest plus closing costs | $73,774 | $72,734 |
| Balance owing after 3 years | $453,540 | $457,445 |
What the numbers mean: refinancing lowers the payment by about $137 a month. But after including the $8,000 in costs, the three-year cost advantage is only about $1,041. The refinance also leaves about $3,905 more owing at the end of that period. A lower rate can help, but the fees and remaining debt matter too.
What if you extend repayment to 25 years?
At the same assumed 4.50% rate and $508,000 starting balance, extending amortization to 25 years lowers the payment to $2,811.64—about $528 less per month than keeping the original mortgage. After three years, however, the balance would be about $472,469, or $18,929 more than keeping the original mortgage. Interest plus the financed closing costs would be about $73,688, leaving a three-year cost advantage of only about $86.
That extra monthly breathing room may be useful, but much of the payment reduction comes from repaying principal more slowly. We should review both your cash flow and your progress toward becoming mortgage-free.
Request your own refinance comparison
I can compare your existing mortgage with suitable alternatives, including the estimated payout costs, payments, interest and remaining balances over a common timeframe. If your current term ends sooner, we will also need assumptions about the rate after renewal.
Request my refinance comparison · Call 604-868-6495
Start with your approximate balance, rate, renewal date and goal. I will explain how to share statements and documents securely.
Calculation assumptions: monthly payments in arrears, fixed nominal rates compounded semi-annually, no extra payments and no rate changes during the 36-month comparison. Calculations use unrounded payments; displayed amounts are rounded. Interest plus closing costs excludes principal repayment and includes interest on financed fees. Actual lender calculations, penalties, costs and eligibility may differ. This example does not estimate lifetime savings.
For general guidance, see the Financial Consumer Agency of Canada on breaking a mortgage contract.
A straightforward refinance review
- Start with your goal. Tell me what you want to change and when you need it done.
- Review your current mortgage. We’ll look at your balance, rate, maturity date and potential payout costs, along with your property and financial picture.
- Compare realistic options. I’ll walk you through the lender options, costs and trade-offs that fit your situation.
- Coordinate the next steps. If you proceed, I’ll help organize the application, supporting documents and lender conditions through to completion.
Mortgage refinance questions
Can I refinance before my mortgage renewal?
You may be able to, subject to qualification and your mortgage terms. Paying out a closed mortgage early can trigger a penalty. We’ll compare that cost with the benefit of refinancing now and the option of waiting.
Will I have to qualify again?
Refinancing generally requires a new review of your income, credit, debts and property. Banks apply a mortgage stress test to refinances; requirements at other lenders depend on the lender and program. Having equity does not guarantee approval.
Can I refinance if I’m self-employed?
Potentially. The documents and income approach depend on your business and the lender. We can review your tax returns, business financials and other supporting records to identify suitable options.
Explore self-employed mortgage options.
Is refinancing the same as a HELOC or second mortgage?
No. Refinancing typically replaces or restructures the main mortgage. A HELOC provides revolving access to an approved credit limit, while a second mortgage is additional borrowing behind the first mortgage. Each has different costs, repayment terms and qualification requirements.
Learn about second and private mortgages.
What should I have ready for our first conversation?
A recent mortgage statement, your renewal date, an approximate property value and a summary of what you want to accomplish are a useful starting point. I’ll explain which documents are needed and how to provide them securely. Please do not send sensitive financial documents through a general website contact form.
Let’s see whether refinancing makes sense for you
You don’t need to know the right mortgage product before getting in touch. We can start with your current payments, your goals and the questions you want answered.
Tyler Shymkiw, PhD — Mortgage Broker, Thrive Mortgage
Helping homeowners across British Columbia, including Maple Ridge, Pitt Meadows, Mission, the Tri-Cities and Langley.