Refinancing tops out at 80% of the property’s value. Who decides the value? The lender’s appraiser. Not the price you paid, not what the neighbour got last month. If you’re breaking your current term, the penalty goes on the bill too, and it often decides whether the move makes sense.
Documents before comparison
Your mortgage statement with the balance and estimated penalty, the tax bill, your notices of assessment and the list of debts you plan to pay off. Ask your current lender for the penalty in writing. The number you get over the phone isn’t always the one on the final bill.
Available equity
You can generally refinance up to 80% of the property’s value, minus what you still owe. On a Saguenay home worth $500,000 with $250,000 outstanding, that’s roughly $150,000, before you factor in the penalty for breaking the current term.
Penalty and fees in Saguenay
Before comparing two monthly payments in Saguenay, add up what the switch costs: the penalty, legal fees, appraisal and the new loan’s fees. A lower payment that takes six years to pay back those costs isn’t a saving.
Debts or work financed
The amount you take out caps at 80% of value, as set by the lender’s appraisal. What you do with it doesn’t have to be justified, unless you plan to deduct the interest.
New payment
A lower monthly payment and a lower total cost aren’t the same thing. Stretching the amortization eases the budget now and adds years of interest. Compare both numbers before you sign anything.
To prepare
What to gather.
Current mortgage balance
Property value
Debts or project to finance
Mortgage penalty
New payment
Available equity
Frequently asked
Can the file be reviewed remotely?+
Yes. Phone, email or video call, with documents sent online. We can meet in person if you’d rather, but most files get done without anyone driving anywhere.
How much can be refinanced?+
Up to 80% of the property’s value. The lender’s appraisal sets that value, not the price you paid. Break the current term and the penalty goes into the calculation, and it’s often what settles the question.
Buying, renewing, refinancing, or something a bit out of the ordinary: tell us where you’re at, even if it’s still fuzzy. Mathieu gets back to you with next steps and the documents to pull together.
