Equity can cover the renovation bill, or it can just move the strain to later. Rolling debt into the mortgage lowers the payment. A three-year balance over twenty-five years, though, means more interest in total.
Figure out the real cost
Set the penalty, the fees and the new term against the monthly saving, and divide the penalty by that saving. If the answer beats the months left in your term, the operation loses money.
And at renewal?
A refinance should still make sense at the next renewal, not only today. What would the payment look like if rates have gone up when the new term ends?
Documents to gather
What the lender will ask for.
Current mortgage balance
Property value
Debts or project to finance
Mortgage penalty
New payment
Available equity
Frequently asked
Which documents should I gather?+
Your last two notices of assessment, recent pay stubs, an employment letter, three months of bank statements and proof of your down payment. Add contractor quotes and the work schedule. Ready before you make an offer, they keep a short financing window realistic.
Current rates
Today’s rates, with the fine print.
These rates are indicative. Yours depends on your file, the type of mortgage (insured or not) and the lender. And look at the penalty too, it matters as much as the number.
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.
