Solutions · Equity & investment
Mortgage refinancing in Montréal — with the math done first.
A refinance replaces your current mortgage with a new one: a different rate, term, amortization or amount. Done well, it lowers your total cost of borrowing or releases equity for something that matters. Done carelessly, a penalty and fees quietly eat the benefit. We show you the break-even month before you sign anything.
Reviewed by Stan Rashev, mortgage & real estate broker · Updated
The short answer
A mortgage refinance replaces your current mortgage with a new one, usually to get a better rate, change the term or amortization, or release equity. In Québec you can refinance up to 80% of your home's appraised value, and a notary registers the new hypothec. Mid-term, a penalty applies — three months' interest or the interest-rate differential — so the savings must exceed the costs. Best Mortgage Montreal calculates the break-even month and compares 30+ lenders before you decide.
01 Sounds like you?
This is for you if…
Refinancing is a calculation before it's a decision. We weigh the penalty, legal and appraisal costs against the savings and the purpose of the new money — then compare that with waiting for renewal or using a second mortgage instead.
Talk it through- 01Your rate is well above today's rates and you have years left in your term.
- 02You want to consolidate credit cards, lines of credit or a car loan.
- 03You're renovating, adding a unit or helping a child buy.
- 04You're separating and need to buy out a co-owner's share.
- 05You want to change lenders, amortization or the type of rate.
03 Structures we'll compare
There's always more than one way to do it.
We'll put at least two or three of these side by side for your situation — with the real cost, the trade-offs and the fine print of each.
04 In depth
What to know before you decide.
Refinancing is one of the most powerful tools a homeowner has — and one of the easiest to misuse. The difference is in the arithmetic: penalty, fees, new rate, new amortization and what the released money will do. Here's what to understand before you refinance in Montréal.
Ask us about your situationWhen refinancing makes sense — and when it doesn't
Refinancing pays off when the savings or the use of the funds outweigh the cost of leaving your current mortgage. That's often true at renewal, when no penalty applies, or when you have high-interest debt to consolidate. It's rarely worth it mid-term just to shave a fraction off a fixed rate with a big-bank interest-rate differential penalty. The answer depends on your penalty, your remaining term and what the money will do — which is why we start with the numbers, not the rate sheet.
How the penalty is calculated
Variable-rate mortgages usually charge three months' interest. Fixed-rate mortgages charge the greater of three months' interest or the interest-rate differential (IRD), and large banks often calculate the IRD using posted rates and the discount you received, which can make the penalty several times larger than at a monoline lender. Ask your lender for a written payout statement — or run an estimate on our prepayment penalty calculator — before deciding.
Refinancing in Québec: the notary's role
In Québec, a refinance is signed before a notary, who registers the new hypothec, pays out your existing mortgage and, if you're consolidating, pays each creditor directly from the proceeds. Notary fees are a normal cost of refinancing, though some lenders contribute to legal and appraisal costs. Plan four to six weeks from application to signing, longer if the appraisal or title needs work.
05 Costs, timing & pitfalls
What it costs, how long it takes — and what to avoid.
What a refinance costs
The main costs are the prepayment penalty if you're mid-term, notary fees, an appraisal and sometimes a discharge or reinvestment fee from your current lender. Some lenders contribute to legal and appraisal costs on a refinance, which can change the math. We list every cost in writing next to the monthly saving and the total interest over the term, so the decision is based on the full picture.
Timeline from application to signing
Most refinances take three to six weeks. Week one covers the review, application and documents; the appraisal follows; the lender issues its approval; and the notary prepares the deed, obtains payout statements and schedules the signing. If you're consolidating debt, the notary pays your creditors directly on signing day.
Refinance mistakes to avoid
Refinancing a fixed mortgage mid-term at a big bank without checking the IRD penalty. Extending the amortization on consolidated debt without a faster payoff plan. Borrowing the maximum because it's available. And forgetting the stress test: a refinance requires full qualification, so a recent job change or a new car loan can reduce what you're approved for.
Questions to ask before you sign
Before you refinance, ask: what is my exact penalty in writing, what is the break-even month after all costs, and would waiting until renewal or using a second mortgage cost less? Ask how the new amortization changes total interest, and what you'll do with any released cash. We answer all of these before you commit.
06 An illustration
What it can look like, in numbers.
A Rosemont homeowner with a $700,000 home owes $350,000 at 3.09%, carries $25,000 on credit cards and a $20,000 car loan, and wants $40,000 for a kitchen.
Today — three payments
- Mortgage
- $1,886
- Credit cards (3% minimum)
- $750
- Car loan
- $493
- Monthly outflow
- $3,129
Refinanced — one payment
- New mortgage
- $435,000
- Includes renovation funds
- $40,000
- Loan-to-value
- 62%
- Rate · amortization
- 4.34% · 25 yrs
- Monthly payment
- $2,369
07 Run your own numbers
Home Equity Calculator
Find out how much equity you can access, what it could fund and what it would cost each month — as a refinance or a line of credit. Open full page
Your home, in three parts
08 Good to know
Questions people ask before they call.
Can't find yours? Stan answers the phone himself more often than you'd expect.
(514) 994-1030Toll-free 1 855 777-1711 · by appointment in Saint-LaurentHow much can I refinance my home for in Québec?
Federally regulated lenders allow a refinance up to 80% of your home's appraised value, including any existing mortgage and secured line of credit. Above that, a second mortgage or alternative lender may be an option, at a higher cost.
Is it worth refinancing to get a lower rate?
Only if the interest you save over the remaining term is larger than the penalty plus legal and appraisal costs. We calculate the break-even month for you; if it's beyond your renewal date, waiting is usually better.
How long does a refinance take in Montréal?
Usually three to six weeks: application and appraisal, lender approval, then signing with a notary, who registers the new hypothec and pays out the old mortgage and any debts.
Do I need to pass the stress test to refinance?
Yes. A refinance is a new mortgage, so you qualify at the higher of your contract rate plus 2% or 5.25%. A straight switch at renewal with no new money is the main exception.
Can I refinance with bad credit?
Yes, through alternative lenders, often with a slightly higher rate and a lender fee, as long as there's enough equity. We plan the return to a prime lender at the next renewal.
What does a refinance cost?
Expect the prepayment penalty if you're mid-term, notary fees, an appraisal and possibly a discharge fee from your current lender. Some lenders contribute to legal and appraisal costs. We list every cost before you decide.
09 Often combined with
Related solutions
Second Mortgages
Access equity while keeping your current first-mortgage rate — from alternative and private second-mortgage lenders across Québec, with a planned exit.
ExploreHome Equity & HELOC
Home equity loans and HELOCs up to 65% of value as revolving credit — for renovations, investing or opportunity, with a repayment plan.
ExploreDebt Restructuring
Credit cards, lines of credit and loans consolidated into one secured structure — so your payments fall and your plan becomes manageable again.
Explore
About the reviewer
Stan Rashev · Founder, mortgage & real estate broker
Stan Rashev has helped Montréal families, investors and business owners structure mortgages for 22 years. He works with more than 30 lenders, holds a master's degree in engineering, and serves clients in English, French, Russian and Bulgarian.
- Canada's Top 75 Mortgage Brokers, 2023
- #1 broker at Dominion Lending Centres Centre-West Montréal, three years running
- Top 5 broker at First National, Québec & Atlantic
- Desjardins Excellence Gala, 2025
Full profile LinkedIn How we review content
Mortgage brokerage in Québec is regulated by the Autorité des marchés financiers (AMF). You can check any broker's right to practise with the AMF. This page gives general information, not personalized financial advice; rules and rates change, and your options depend on your full file.
10 Start here
Request a confidential mortgage review.
Tell us what you're trying to solve. We'll come back within one business day with our read on the situation and the options worth considering — whether that's with us or not.
- A 30-minute conversation about your complete picture, not a rate quote
- No credit check to get started, and nothing to sign
- A minimum of 2–3 tailored options, explained in writing
- Your information is never shared with third parties
- Zero obligation or cost to you
Thank you — we're on it.
Stan or a member of the team will be in touch within one business day. If it's urgent, call (514) 994-1030.