Using your equity
Refinance your mortgage in Alberta
We work out your prepayment penalty first. If breaking your mortgage costs more than it saves, we'll tell you to stay put and when to come back.
No credit check, and no commitment.
What 80% looks like
Updated earlierBased on a $700,000 home with a $400,000 mortgage. Your numbers will differ, but the 80% ceiling is the same for everyone.
- Refinance ceiling (80% LTV)
- $560,000
- The federal limit on a conventional refinance. You can't get default insurance on one.Use my numbers
- Available to you
- $160,000
- $560,000 less the $400,000 you still owe.
- You'd requalify at
- 6.09%
- A refinance is a new origination, so the stress test applies in full.Run the stress test
Rates as of September 21, 2026 at 9:00 a.m. MT, subject to change without notice. O.A.C. Not an offer of credit, a rate hold or a pre-approval. Daniel De Sousa, Mortgage Associate, Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage, a RECA-licensed mortgage brokerage.
- 80% of value is the federal ceilingAnything above that isn't a conventional refinance.
- We run the penalty firstYou see it before we recommend anything.
- Break-even in dollarsShown in dollars you can budget with, instead of basis points.
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How a refinance works
A refinance replaces your existing mortgage with a new one mid-term, with a different amount, rate or structure (or all three). Because it breaks your current contract, it carries a prepayment penalty. And because it’s a new mortgage, you have to requalify in full, including the stress test.
A renewal is different. It happens at maturity, with no penalty and no stress test, and mixing the two up is expensive. If you want a better rate and your term is nearly up, you probably want a renewal or a straight switch instead.
The federal ceiling on a conventional refinance is 80% of your home’s appraised value, less what you still owe. You can’t get default insurance on a refinance, so there’s no 90% or 95% option. If someone offers you one, it isn’t a conventional refinance.
Paying off other debt
Your mortgage is usually the lowest-rate debt you have. If you’re also carrying credit cards, lines of credit or a car loan, a refinance can roll them into your mortgage payment. See what consolidating costs.
How it works
How refinancing works with RateLens
We work out the cost of leaving your current mortgage first, because that cost decides whether refinancing is worth it.
Step 1: We work out your penalty
Same day
On a variable rate, it's 3 months' interest. On a fixed rate, it's the greater of 3 months' interest or the interest rate differential, and the method your lender uses can change that number a lot. We calculate it before anything else.
Step 2: We price the new mortgage
Same business day
We work out the amount you can access at 80% of value, the rate across our lender panel, and the payment. Then we find the break-even point, where the interest you save overtakes the penalty plus the legal, appraisal and discharge fees.
Step 3: You decide with both numbers in hand
2–4 weeks to fund
If the break-even lands after your term ends, we'll tell you to wait for renewal and set a reminder for the date. If it lands before, we take your file to the lender that fits it.
Daniel De Sousa, Mortgage Associate, runs the appraisal and the lawyer through to funding.
The rules
What decides whether a refinance is worth it
You can know 4 of these 5 numbers before you apply.
Loan-to-value ceiling
Run your numbers80% of appraised value, less your current balance. On a $700,000 home with a $400,000 mortgage, that leaves $160,000.
OSFI Guideline B-20. You can't get default insurance on a refinance.
Prepayment penalty
Estimate your penaltyVariable: 3 months’ interest. Fixed: the greater of 3 months’ interest or the interest rate differential.
The method your lender uses to calculate the IRD makes the biggest difference here.
Stress test
Run the stress testApplies in full. You qualify at the greater of 5.25% or your new contract rate plus 2 percentage points.
A refinance counts as a new mortgage, so you requalify from scratch.
Costs at closing
Itemize themAppraisal, legal fees, a discharge fee and title insurance. Typically $1,500 to $2,500 all in, on top of the penalty.
In Alberta, there's no land transfer tax on a refinance and no PST on any insurance premium.
Timeline
Typically 2 to 4 weeks from application to funding.
The appraisal and your lawyer set the pace more than the lender does.
How we calculate your qualifying rate. Under OSFI Guideline B-20, lenders qualify you at the higher of your contract rate plus 2 percentage points, or 5.25% (the minimum qualifying rate). Since November 21, 2024, OSFI no longer prescribes this test for eligible uninsured straight switches at renewal between federally regulated lenders, with no increase in the loan amount or remaining amortization. Lenders still assess creditworthiness. New purchases and refinances generally require qualification. Provincially regulated credit unions (including Alberta credit unions) aren’t bound by Guideline B-20 and set their own qualifying policies, which is one reason a broker can sometimes place a file a bank cannot. Rules current as of September 21, 2026. Source: OSFI Guideline B-20.
Prepayment penalties
How your prepayment penalty is calculated
Breaking a Canadian mortgage mid-term costs money. How much depends on the type of mortgage you have and on who your lender is.
Variable rate
3 months’ interest. Usually a few thousand dollars, and a lower rate often saves more than that.
Fixed rate
The greater of 3 months’ interest or the interest rate differential (IRD). The IRD is the gap between your rate and the lender’s current rate for a similar remaining term, applied to your balance for the time left.
Where it gets expensive
The big banks calculate the IRD using their posted rates, which are higher than what almost anyone pays. That makes the gap, and the penalty, much larger. Monoline lenders and credit unions, including Alberta’s own, generally use their discounted rates.
On the same mortgage, that difference can be tens of thousands of dollars. Most Albertans never read this clause, and it’s set when you sign your mortgage, long before you leave it.
Ask your lender which method they use before you sign your next mortgage. Estimate your penalty.
Break-even
If the interest you save over the remaining term is more than the penalty plus the legal, appraisal and discharge fees, refinancing comes out ahead. If it isn’t, we’ll tell you to wait for renewal.
Types of refinance
What you can use a refinance for
A refinance can do quite different jobs. The right one depends on what you want to fix.
Rate-and-term refinance
Replace your mortgage with a new one at today's rate.
Best for getting out of a rate you regret
Run the break-evenYou pay a prepayment penalty, and we calculate whether the interest you save over the remaining term is more than that. If it isn’t, wait for maturity. We’ll set a reminder for you.
Equity take-out
Borrow against your equity up to 80% of value, less what you owe.
Best for renovations, investments or a spousal buyout
One large, planned amount at mortgage rates. The federal limit is 80%, and anything above that isn’t a conventional refinance. If you’d like to draw money as you need it instead of taking a lump sum, a HELOC usually fits better.
Debt consolidation
Fold cards, car loans and lines of credit into the mortgage.
Best for rolling high-interest debt into one payment
Your monthly payment usually drops a lot. Your total interest can go up if you stretch a short debt over 25 years, so we show you both numbers before you decide. See the full comparison.
Before you consolidate: rolling debt into your mortgage lowers your monthly payment. It can also increase what you pay in total, because you’re spreading a short debt over a long amortization. It also turns unsecured debt into debt secured by your home. We’ll show you the total-interest figure both ways before you decide.
Today's rates
Today's refinance rates
You can't get default insurance on a refinance, so every refinance is uninsured. These are the uninsured rates.
Effective September 21, 2026 at 9:00 a.m. MT
| Term | Rate | APR | Payment per $100,000 | Who it’s for | Get this rate |
|---|---|---|---|---|---|
| 5-year fixed | 4.09% | 4.14% | $531/mo | Uninsured | Hold this rate |
| 3-year fixed | 4.04% | 4.09% | $528/mo | Uninsured | Hold this rate |
| 5-year variablePrime − 0.25% | 4.20% | 4.25% | $537/mo | Uninsured | Hold this rate |
| 2-year fixed | 4.49% | 4.54% | $553/mo | Uninsured | Hold this rate |
Payment per $100,000 assumes a 25-year amortization, monthly payments and semi-annual compounding. We calculate it from the rate in the same row. Run it on your own number.
Rates shown are current as of September 21, 2026 at 9:00 a.m. MT and are subject to change without notice. Rates are available on approved credit (O.A.C.) only, are subject to the terms and conditions of the applicable lender, and may vary based on your credit history, income, down payment or equity, loan-to-value, property type and location, occupancy, amortization, and whether the mortgage is insured, insurable or uninsured.
Annual percentage rates (APR) shown assume a mortgage amount of $500,000, an amortization of 25 years with monthly payments, and include no lender or brokerage fees. Fixed rates are compounded semi-annually, not in advance, as required under section 6 of the federal Interest Act; variable rates are compounded monthly. Payment figures exclude property taxes, heating, condominium fees and default insurance premiums unless stated. Insured rates require mortgage default insurance and are available only on qualifying transactions.
Rates may contain errors or omissions and do not constitute an offer of credit, a rate hold or a pre-approval. Not all applicants will qualify. Contact Daniel De Sousa, Mortgage Associate, to confirm the rate available to you. Daniel De Sousa is licensed by the Real Estate Council of Alberta (RECA) and registered with Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage.
On a refinance, the rate is only part of the cost. Compare the all-in cost (rate, penalty and closing costs) against the interest you save over the remaining term.
How much equity you can borrow
Each way of borrowing against your home has its own limit. The right one usually depends on whether you need one lump sum or money you can draw and repay.
Refinance
80%
of appraised value, less your balance. It has a lower rate than the other two, and it's the only one that breaks your existing mortgage.
Learn about this optionHELOC
65%
on its own, or 80% combined with an amortizing mortgage. It's revolving and variable, and you pay interest only on what you draw.
Learn about this optionSecond mortgage
80–85%
typically. It sits behind your existing mortgage, which stays as it is. It has the highest rate of the three, plus lender and brokerage fees.
Learn about this optionCalculators
Run your own numbers
Free, with no email required. They use Canadian rules: semi-annual compounding, the down payment ladder and the stress test.
Refinance break-even
Your break-even point, comparing interest saved with the penalty and fees, month by month.
Mortgage penalty (IRD)
IRD or 3 months' interest, using both the posted-rate and discounted-rate methods.
Debt consolidation
Before and after payment, and the total-interest figure both ways.
HELOC
65% on its own or 80% combined. See how much room you have without breaking your mortgage.
Mortgage payment
The new payment at the new amount, at every Canadian frequency.
Stress test
Whether you requalify at the greater of 5.25% or your new rate plus 2 points.
Daniel De Sousa, Mortgage Associate with Indi Mortgage
Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage · RECA licensed · 4990 92 Ave NW #105, Edmonton. Verify our licence on RECA ProCheck(opens in a new tab)
Client reviews posted here are unedited, and each one names who handled the file. We don’t pay for reviews or filter them.
Daniel De Sousa
Mortgage Associate, Indi Mortgage
Handles equity take-outs and debt consolidation, interest-rate-differential penalty analysis, spousal buyouts and business funding. Licensed by the Real Estate Council of Alberta and registered with Indi Mortgage, working out of the Edmonton office at 4990 92 Ave NW #105. Verify our licence on RECA ProCheck(opens in a new tab)
Daniel De Sousa, Mortgage Associate, is licensed by the Real Estate Council of Alberta (RECA) and registered with Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage, a mortgage brokerage licensed by RECA. Verify our licence on RECA ProCheck(opens in a new tab)
Monday–Friday, 9:00 a.m.–5:00 p.m. Mountain Time. Closed Saturday and Sunday. Book 15 minutes if that’s easier.
Questions about refinancing
How much equity can I take out?
Up to 80% of your home’s appraised value, minus your current mortgage balance. On a $700,000 home with a $400,000 mortgage: 80% of $700,000 is $560,000, less $400,000, leaves $160,000. You’ll need an appraisal to confirm the value. You can’t refinance to 90% in Canada, because default insurance isn’t available on refinances.
Is a refinance the same as a renewal?
No, and mixing them up is expensive. A renewal means signing a new term with your current lender when your term ends, with no penalty and no stress test. A refinance changes the amount or the structure mid-term. That means a penalty and a full requalification, including the stress test. If you want a better rate and your term is nearly up, you may want a renewal or a switch, not a refinance.
Will I have to pass the stress test?
Yes. A refinance counts as a new mortgage, so you qualify at the greater of 5.25% or your new contract rate plus 2 percentage points. Against our published 5-year fixed, that’s currently 6.09%.
How long does a refinance take?
Typically 2 to 4 weeks from application to funding. The appraisal and your lawyer or notary set the pace.
Can I roll the penalty into the new mortgage?
Usually, yes, as long as the total stays within the 80% ceiling. It’s convenient, but it also means paying interest on the penalty for up to 25 years. We show you the break-even both ways: with the penalty financed and with it paid at closing.
Do I need an appraisal?
Almost always, because the amount you can borrow depends on the value. Budget $300 to $500 in the Edmonton region. Some lenders cover it as part of the offer. A low appraisal is the most common reason a refinance shrinks, so we work from a conservative value until the appraisal is done.
Related mortgages
Find out what breaking your mortgage costs
The form is 3 fields. Daniel, a licensed mortgage associate, gets back to you with the penalty, the amount available and the break-even point, even if the answer is to wait.
- We work out your penalty before we price a new mortgage.
- You get the total-interest figure both ways, as well as the new payment.
- If the break-even lands after your term ends, we'll set a reminder for your maturity date instead.
Prefer to talk? (825) 797-5417 · Mon–Fri 9–5 MT
How we get paid. Daniel De Sousa arranges mortgages through Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage, a licensed mortgage brokerage, not a lender. The brokerage and Daniel are compensated by the lender you choose when your mortgage funds (paid by the lender, not by you). Compensation varies by lender and product and doesn’t change the rate you’re quoted. A lender fee or brokerage fee is uncommon and happens mainly on alternative or private lending. If one applies to your file, we’ll disclose the exact amount in writing before you sign anything. We’ll tell you if any product we recommend pays us more than an alternative we considered. Before we start work on your file, you’ll receive a written service agreement setting out our services, our compensation and any fee that applies to you.
See what breaking costs and what refinancing saves
About two minutes and no credit check. You'll see both numbers side by side.
No credit check, and no commitment.