Mortgage Renewal vs Refinance in 2026: Renew, Switch or Refinance?

Renewing means signing a new term with the lender you already have: same balance, same amortization, a new rate. Switching moves that same mortgage to a new lender when the term ends. Refinancing replaces it with a new mortgage, usually to borrow more, stretch the amortization or roll in other debt. Only a refinance (or a HELOC) lets you take out equity, up to 80% of your home’s value, and only those make you qualify again at the stress test. A refinance also comes with legal and appraisal costs that a switch often avoids.

That matters more than usual this year. Many people renewing this year took a five-year fixed in 2021 at about 2.2%, and renewing at today’s best rates raises their payment by about a quarter. I ran the numbers for typical 2021 buyers in Kelowna and Metro Vancouver. If you put 20% down, you can probably refinance if you need to: about $54,000 of room on a typical Kelowna condo and about $198,000 on a typical Kelowna house. If you bought a condo or apartment with 5% down, you probably can’t refinance yet, because you still owe more than 80% of what it’s worth today. For you, the real choice is renew or switch, and a switch usually skips the stress test.

The numbers use benchmark prices from the Association of Interior REALTORS (August 2026) and Greater Vancouver REALTORS (September 2026), Bank of Canada and CMHC data, and my lender sheet of October 14, 2026.

General information, not advice for your situation. Worked examples use my lender sheet of October 14, 2026 (best insured five-year fixed 4.69%; refinance and uninsured five-year fixed 4.89%); live rates elsewhere on the page update automatically. All rates are on approved credit and subject to change.

What’s the difference between renewing, switching and refinancing a mortgage?

All three happen at the same moment, the end of your term, so they get mixed up. The difference is what changes:

So the first question isn’t which rate is lowest. It’s whether you need anything to change besides the rate. If you don’t, renew or switch. If you need money, a longer amortization or a different set of owners on title, you’re refinancing, and the rules and costs change with it.

Should you renew, switch or refinance? Start with what you need

Start with the goal, not the product:

Most people renewing this year need the first card. The rest of this guide is about when the others are worth it.

Who’s renewing in 2026, and how big is the payment jump?

A lot of people, and for most the jump is real but manageable. The Bank of Canada says the last of the five-year, fixed-payment mortgages taken out during the pandemic renew in the 12 months from May 2026. That’s about 12% of all mortgages in Canada, and their payments rise about 15% on average. Another 14% renew over the same year with, on average, no change in payment, and by the second half of 2027 nearly everyone facing a big jump will have renewed.

Locally, borrowers are nervous but not stuck. In Royal LePage’s 2026 survey of people renewing this year, 42% of BC renewers who had renewed before felt more anxious than last time (45% in Vancouver), and 37% expected a higher payment. Only 49% planned to stay with their lender; 41% wanted to compare options first and 8% already planned to switch (11% in Vancouver).

On typical local mortgages, it looks like this. CMHC’s data put the average new mortgage in mid-2021 at $450,369 in the Kelowna area and $569,937 in Metro Vancouver. At 2.21%, the chartered banks’ average for a new insured five-year fixed in August 2021, on a 25-year amortization, those borrowers paid $1,953 and $2,472 a month. Five years later they owe about $378,933 and $479,536, with 20 years left.

A shorter term or a variable rate softens the jump, but neither is free: a three-year term renews again in 2029 at whatever rates are then, and a variable rate moves with every Bank of Canada decision. I covered that trade-off in Bank of Canada rate hike odds and your renewal.

How much equity do 2021 buyers in Kelowna and Vancouver have now?

More than most people think, unless they bought a condo with a small down payment. Equity comes from two places: paying down the mortgage and the change in your home’s value. On a 2021 mortgage at 2.21%, five years of payments clear about 16% of the original loan. Prices did the rest, or didn’t.

In the Central Okanagan, the typical single-family home and townhouse are worth about 8% to 10% more than in August 2021, while the typical condo is about 2% lower, using the Association of Interior REALTORS’ benchmark prices as published. In Metro Vancouver, Greater Vancouver REALTORS’ own five-year comparison shows detached houses down 2.0%, apartments up 0.3% and townhouses up 6.0%. Prices there are about where they were in 2021, after rising into 2022 and falling back.

Now the equity. I took a typical home of each type bought at the 2021 benchmark price, with the minimum down payment, 10% or 20%, a 2.21% five-year fixed, a 25-year amortization and no extra payments. Here’s what each buyer still owes as a share of today’s value:

Anything left of the red line can be refinanced; your room is the gap between what you owe and 80% of today’s value. With 20% down, that’s about $54,000 on the Kelowna condo, $125,000 on the townhouse and $198,000 on the house. In Vancouver it’s about $88,000 on the apartment, $168,000 on the townhouse and $202,000 on the detached house.

Kelowna’s 2021 house and townhouse buyers owe a smaller share of their home’s value than Vancouver buyers, because prices here rose 8% to 10%; in Vancouver they ranged from 2% lower to 6% higher. Outside townhouses, a Vancouver buyer’s equity is mostly paid-down mortgage. And if you’ve made lump-sum payments, or your home is in better shape or a better spot than the typical one, your room is bigger than this. The lender’s appraisal decides.

Can you refinance if you bought with 5% or 10% down?

Often not yet, if it’s a condo. The 2021 buyer who put 5% down on the typical Kelowna condo owes about $393,282 on a home now worth about $465,700. That’s 84% of today’s value, about $21,000 more than a refinance allows. The Vancouver apartment buyer with the minimum down is at 82%, about $12,000 over. With 10% down, the Kelowna condo buyer is just under the line with about $3,000 of room, less than the cost of refinancing, and the Vancouver apartment buyer has about $15,000.

Townhouse and house buyers who put the minimum down did better: about $29,000 of room on the Kelowna townhouse, $66,000 on the Kelowna house and $36,000 on the Vancouver townhouse. With 10% down, about $55,000, $94,000 and $65,000.

Do you need to pass the stress test to renew, switch or refinance?

In most cases, only for a refinance or a new HELOC. The stress test means qualifying at the higher of 5.25% or the contract rate plus 2%:

On a typical file the gap is large. Take the 2021 Kelowna house buyer with 20% down: about $647,395 owing on a home worth $1,056,700. Refinancing to add $60,000 for a renovation, over 30 years, takes about $157,100 of household income at the stress test ($166,200 over 25 years), assuming no other debts. Switching the same mortgage to a new lender without adding money needs no stress test at all. Under the rules before November 2024, that switch would also have meant qualifying at 6.89%, which for this mortgage takes about $167,200 of income.

OSFI’s newer loan-to-income limit doesn’t change this for you. It caps how much of each lender’s new uninsured lending can go to borrowers above 4.5 times income; it isn’t a rule for individual files, though very high-debt refinances can be harder to place. And the Bank of Canada found that more than 90% of last year’s renewers renewed at rates below the rate they’d qualified at. That cushion is what the test is for.

What exactly counts as a straight switch?

A straight switch means the mortgage moves and nothing else does. For the stress-test exemption, OSFI and the Department of Finance set out the conditions:

Two things trip people up. A mortgage registered as part of a readvanceable plan (a mortgage and a HELOC under one collateral charge) doesn’t qualify, even if you never use the line. And if your mortgage is with a BC credit union, which is provincially regulated, the federal exemptions don’t cover the move. Ask the new lender how it will treat it before you apply.

A switch still involves paperwork. The new lender values the home (sometimes with an appraisal), checks your income and credit, and a lawyer or notary registers the new mortgage and pays out the old one. Many lenders cover those costs on a straight switch. My step-by-step guide covers the process: how to switch lenders at renewal.

Can you add money to your mortgage at renewal?

Not as a renewal or a switch. Adding money turns it into a refinance, with the stress test, legal costs and an appraisal. You can do it with your current lender or a new one, and at maturity there’s no penalty.

Take the 2021 Kelowna house bought with 20% down again. Renewing $647,395 at 4.89% with 20 years left costs $4,216 a month. Refinancing to add $60,000 costs $4,607 over the same 20 years, $4,070 over 25 and $3,729 over 30.

So adding $60,000 and going back to 25 years leaves the payment lower than a plain renewal. That’s how a lot of people absorb a renewal jump: the Bank of Canada estimates about 10% of people who had a mortgage in 2022 have refinanced since, and about 70% of them stretched their amortization, by six years on average. It works, but it resets the clock: you’d be paying until 2051 instead of 2046.

If your mortgage is insured and you refinance, you also give up the insured rate on the whole balance. More on that below.

Can you refinance at renewal without a penalty?

Yes, on the maturity date. Your term is over, so there’s nothing to break: you can refinance with your own lender or move to a new one without a prepayment penalty.

Before maturity, it depends what you’re doing. Renewing early with your own lender is often penalty-free inside its early-renewal window: RBC allows it up to 120 days before maturity and Scotiabank up to six months, for example, and CIBC lets eligible borrowers renew as early as 150 days out. But an early renewal locks you in with that lender. Refinancing or leaving before the maturity date normally costs a penalty.

You don’t have to wait until the last week to shop, though. A new lender will usually hold a rate for 90 to 120 days and fund the switch or refinance on your maturity date, and many will give you the lower rate if rates fall before you close. That hold matters right now: fixed rates have been creeping up since late September, when CIBC and TD raised some of their fixed rates.

How much does it cost to switch or refinance in BC?

A switch often costs little or nothing; a refinance usually costs about $1,300 to $2,700 before any penalty. Here’s where the money goes:

Two things that aren’t on the list. There’s no BC property transfer tax on a refinance, because the home isn’t changing hands; adding or removing an owner can trigger it unless an exemption applies. And BC law caps what a lender can charge to discharge a mortgage at $75, and for a regular mortgage the lender has to deliver the discharge within 30 days of payout.

Some lenders offer cash back to cover the costs of a switch or refinance. Scotiabank, for example, covers up to $1,100 of closing costs and up to $400 of the old lender’s discharge fee on switches. Read the fine print: cash back is usually repayable if you pay the mortgage out early.

Why are refinance rates higher than renewal or switch rates?

Because lenders price by how the mortgage is backed. Insured mortgages (less than 20% down when you bought, insured by CMHC, Sagen or Canada Guaranty) are the cheapest to fund, so they get the lowest rates. Insurable mortgages, with 20% or more equity and within the insurers’ rules, come next. Apart from the secondary-suite program below, refinances can’t be insured, so they’re priced in the top, uninsured tier.

On my sheet as of October 22, the best five-year fixed is 4.69% insured, 4.69% insurable and 4.99% for a refinance, on approved credit.

That gap is why it rarely pays to refinance an insured mortgage for a small amount. If you need $10,000 and can repay it within a year or two, an unsecured line of credit at about 8% can cost less than moving the whole mortgage to the uninsured rate.

How much is a better renewal rate worth?

More than most people expect. On the average 2021 Kelowna mortgage, $378,933 owing with 20 years left, every 0.10% on the rate costs about $1,777 in interest over a five-year term. A quarter point costs about $4,447 and half a point about $8,903. On the Vancouver average, $479,536 owing, it’s $2,249, $5,627 and $11,267.

Your renewal letter isn’t necessarily your lender’s best offer, so treat it as a starting point. A written quote from another lender, or from a broker who can compare more than 50 lenders, gives you something to negotiate with, and your lender may match it, which saves you the paperwork. Run your own numbers in the mortgage renewal calculator.

Should you break your mortgage early to refinance?

Only if the numbers clear the penalty. Fixed-rate mortgages usually charge the greater of three months’ interest or the interest rate differential (IRD); variable-rate mortgages usually charge three months’ interest. How your lender calculates the IRD matters as much as the rate.

Say you owe $400,000 at 5.49% on a five-year fixed with two years left, and you want to refinance now. Three months’ interest is $5,490. An IRD that compares your rate with a 4.39% two-year rate comes to $8,800. If your lender uses posted rates and takes your original discount (say 1.50%) off today’s posted two-year rate (say 5.29%), the comparison rate drops to 3.79% and the IRD grows to $13,600.

Refinancing at 4.89% would save about $4,656 of interest over the two years left, which doesn’t cover even the smaller IRD. Unless you need the money now, wait for maturity, or ask about a blend-and-extend: your old rate and today’s rate blended into a new term, with no penalty. Blending 5.49% for the 24 months left with 4.69% for three more years works out to about 5.01% for five years. Some lenders also let you add money that way.

Federally regulated lenders have to explain how they calculate your penalty. Ask for the exact figure in writing, or run it through my mortgage penalty calculator. There’s more on how the methods differ in breaking a mortgage in BC.

Refinance, HELOC or keep paying: what’s best for consolidating debt?

Rolling high-interest debt into the mortgage can save a lot, or cost more than the debt did. It depends on what you do with the monthly savings. Consumer debt is high here: Equifax puts the average BC consumer’s non-mortgage debt at $23,558 in the second quarter of 2026, and $24,507 in Vancouver. Credit card balances carried an average rate of 21.28% in July, according to the Bank of Canada, and 19% of homeowners who refinanced in CMHC’s 2026 survey gave consolidating debt as their reason.

Take a common mix: $15,000 on credit cards at 21% (paying $450 a month) and a $25,000 car loan at 8% with four years left ($610 a month). That’s $1,060 a month, and about $12,004 of interest if you pay both off on schedule.

The refinance cuts the monthly payments by about $830. Left on a 25-year schedule, though, the $40,000 costs about $17,039 more in interest than paying the debts off as planned. Keep sending the old $1,060 a month to the mortgage and the debt is gone in about 41 months, about $6,524 ahead after $2,000 of costs.

A HELOC is cheaper to carry and more flexible, but the rate is variable and it’s interest-only by default, so a balance can sit there for years. It also has to pass the stress test. And watch the order: paying off the cards and car loan lowers your total debt ratio, which is sometimes what lets you qualify for the refinance at all, so the lender may pay those debts directly at closing. More in refinancing to consolidate debt and HELOC vs refinance.

Can you refinance to build a suite or carriage house?

Yes, and it’s the one case where you can borrow past 80%. Since January 15, 2025, CMHC, Sagen and Canada Guaranty insure refinances that add a secondary suite, such as a basement suite, garden suite or laneway home (what Kelowna calls a carriage house). The main rules:

• Up to 90% of the home’s value after the work, and that value has to be under $2 million.
• Up to a 30-year amortization.
• No more than four units in total, and you or a close relative live in one of them.
• The money goes to the project; no extra equity out.
• You qualify at the stress test, and an insurance premium (0.60% to 3.10% of the loan, plus 0.20% for an amortization over 25 years at CMHC) is added to the mortgage.

Take a Kelowna house worth $1,056,700 with $760,000 owing, and a $200,000 carriage house. A regular refinance stops at 80% of today’s value, which leaves about $85,000: not enough. The insured suite refinance lends against the lower of the finished value or today’s value plus the build cost. If the appraiser puts the finished home at $1,200,000, the limit is $1,080,000, which covers the $960,000 needed.

BC’s forgivable-loan program for new suites stopped taking applications after March 30, 2025, and the federal low-cost suite loan was cancelled in Budget 2025 before it launched, so this insured refinance is the main tool left. Rent from the new unit can help you qualify, depending on the lender. More in financing a secondary suite in BC.

What if your home is worth less than you paid?

Then renewing or an insured switch are your safe paths, and a refinance may be off the table for now. The Bank of Canada says the typical Canadian home is about 20% below its 2022 peak, with the biggest drops in Ontario and BC. Metro Vancouver’s typical home is 10% lower than three years ago and its typical apartment 11% lower, by Greater Vancouver REALTORS’ numbers. Buyers who stretched in 2022 are the most likely to owe more than 80% of their home’s value now.

Renewing with your lender doesn’t depend on your home’s value. An insured mortgage can still be switched, because the insurance stays with it. An uninsured mortgage is harder: a new lender will value the home, and if you now owe more than 80% of it, you may not qualify for a switch at the best rates. Then your lender’s renewal offer is your main option, and it’s worth negotiating.

The Bank of Canada estimates that about 4% of borrowers renewing in 2027 won’t be able to refinance at today’s prices: they owe more than 80% of their home’s value and their debt ratios are too high even at a 25-year amortization. That rises to about 7% if prices fall another 10%. If that could be you, call your lender early. Under the Canadian Mortgage Charter, federally regulated lenders are expected to offer relief, such as a temporary amortization extension, to borrowers at risk of falling behind.

What if your income, job or credit has changed?

Renewing with your current lender is the safe path: there’s no requalification. Switching means a new lender underwrites you, so a job change, a drop in income, new self-employment or recent missed payments can stop a switch even without the stress test. Refinancing means full qualification at the stress test.

Royal LePage’s survey found 9% of BC renewers had missed or deferred at least one payment during their term. If money is tight, talk to your lender before the renewal, not after a missed payment. Under the Canadian Mortgage Charter, federally regulated lenders are expected to contact you four to six months before renewal and to work with borrowers at risk, for example by extending the amortization temporarily, waiving the fees for that relief and not charging interest on interest if the relief makes the balance grow for a while.

If you’re self-employed or your income is harder to document, a switch can still work with the right lender. That’s a big part of what I do: self-employed mortgages.

Can you extend your amortization at renewal?

Sometimes. If your mortgage is uninsured, your current lender may agree to it after reviewing your income and credit; at a new lender it’s a refinance, with the stress test. If it’s insured, a longer amortization can trigger a new insurance premium; under the Canadian Mortgage Charter, federally regulated lenders are expected to offer temporary extensions to borrowers at risk of falling behind.

Stretching it costs money. On the average 2021 Kelowna mortgage, renewing $378,933 over the 20 years left at 4.69% costs $2,427 a month. Refinancing it to 25 years at 4.89% cuts that to $2,180, about $247 less, but adds about $72,000 of interest over the life of the mortgage if rates stayed where they are.

Royal LePage found 7% of BC renewers have already extended their amortization during this term. It’s a reasonable bridge if you use your prepayment privileges to claw it back when you can.

Is your renewal letter your best rate, and what if you ignore it?

Not necessarily, and doing nothing can cost you. Federally regulated lenders must send your renewal statement at least 21 days before your term ends, showing the rate, term, payment and any fees, and BC has a similar rule for provincially regulated lenders. If your lender won’t renew, it has to tell you at least 21 days ahead. Under the Canadian Mortgage Charter, federally regulated lenders are expected to reach out four to six months before renewal.

If you don’t respond, your mortgage may renew automatically, and your renewal statement has to say so. Some lenders roll you into a short or open term, which usually carries a higher rate. Twenty-one days isn’t much time to compare offers, get an appraisal and close with a new lender, so don’t wait for the letter.

When should you start, and what will you need?

If you work with a broker, start around the 120-day mark. That leaves time to negotiate with your lender and still close a switch cleanly. My BC renewal checklist has the full document list.

Is refinance interest tax-deductible?

Only if you use the money to earn income. The Income Tax Act lets you deduct interest on money borrowed to earn business or property income, such as buying a rental property or investments that pay income. Money used for renovations to your own home, a car, a holiday or paying off personal debt doesn’t qualify. The CRA’s own example is a landlord who refinanced a rental to fund the down payment on his own home: he can’t deduct the extra interest. Keep a record of how the money is used, and talk to your accountant before you borrow.

If you own rentals, refinancing one to buy the next has its own rules and traps. I wrote about it in renewing or refinancing a rental to buy the next one.

My read

If you don’t need money, don’t refinance. A renewal or a straight switch keeps the cheapest rate tier, skips the stress test and costs little or nothing. The work is getting your lender’s offer early and checking it against the market; on a typical 2021 Kelowna mortgage that’s worth about $1,777 for every 0.10%.

Refinance when the money has a job: a renovation that adds value, a suite that adds income, or debt at 20% that you’ll actually pay off. Do it at maturity unless the math clears the penalty, and count the whole cost, including losing an insured rate.

If you bought a condo or apartment in 2021 with 5% down, plan on renewing or switching this time. You probably can’t refinance yet, and you don’t need to: an insured switch gets you the best rates without the stress test. Give it a year or two of payments and the option comes back.

Kelowna and Vancouver owners are in different spots. Kelowna’s 2021 house and townhouse buyers have price gains of 8% to 10% on top of five years of payments. In Vancouver, prices are within a few percent of 2021 except for townhouses, so equity is mostly what you’ve paid down, and the apartment market is still soft. Don’t count on rising values to build it.

Renewal and refinance terms in plain English

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Sources and method

Prices are benchmark prices from the Association of Interior REALTORS (Central Okanagan; August 2021 as published and August 2026) and Greater Vancouver REALTORS (September 2026, with September 2021 values worked back from the board’s own five-year change, because its 2021 dollar figures were recalculated in 2022). The Okanagan comparison is indicative: the Association has since merged boards and standardized its method, and its single-family benchmark excludes lakefront and acreage. The 2021 mortgages assume the minimum down payment under 2021 rules (5% of the first $500,000 and 10% above, insured only under $1 million), 10% or 20% down, CMHC premiums of 4.00% and 3.10% added to the loan, a 2.21% five-year fixed (the Bank of Canada’s August 2021 average for new insured fixed mortgages of five years or longer at the chartered banks), a 25-year amortization and no extra payments. Average mortgages are CMHC’s average value of new mortgage loans in the third quarter of 2021 for the Kelowna and Vancouver metro areas. Today’s rates come from my lender sheet of October 14, 2026 (best insured five-year fixed 4.69%; refinance and uninsured 4.89%; three-year fixed 4.49%; two-year fixed 4.39%; variable 3.70%; HELOC 4.95%), qualifying at the higher of 5.25% or the contract rate plus 2%. Incomes needed include property tax of about 0.45% of value a year in Kelowna, heat of $100 a month, no other debts and a 39% limit on housing costs. Payments are monthly with semi-annual compounding. These are estimates, not approvals; lender policies vary and rates are on approved credit.

• Rules: OSFI on uninsured straight switches (November 21, 2024); Department of Finance on straight switches and portfolio insurance (December 2024); OSFI minimum qualifying rate; OSFI Guideline B-20; Department of Finance on insured refinancing (2016); Canadian Mortgage Charter; FCAC on renewing a mortgage; FCAC on prepayment penalties; breaking a mortgage and blend-and-extend; penalty disclosure; FCAC on HELOCs.
• Suites: CMHC refinance for secondary suites; Department of Finance (October 2024); BC Secondary Suite Incentive Program closure; Budget 2025, Annex 3.
• BC costs and law: BC Disclosure of the Cost of Consumer Credit Regulation (discharge fee); Consumer Protection BC on discharges; LTSA fees; BC property transfer tax FAQ; Scotiabank switch program; BC legal pricing example (January 2026).
• Early renewal: TD; RBC; CIBC; Scotiabank.
• Prices: Association of Interior REALTORS, August 2026 release; August 2021 benchmarks (Castanet); note on the Association’s method; Greater Vancouver REALTORS, September 2026; statistics package; 2022 Home Price Index update.
• Renewals, credit and rates: Bank of Canada Financial Stability Report 2026: households; Bank of Canada staff note on renewals (July 2025); CMHC Residential Mortgage Industry Report; CMHC on the renewal wave (February 2026); CMHC 2026 Mortgage Consumer Survey; Royal LePage 2026 Mortgage Renewal Survey; CMHC average value of new mortgage loans; Equifax Canada, Q2 2026; Bank of Canada household lending rates; Bank of Canada rates on new lending by chartered banks; fixed rates rising (Canadian Mortgage Trends, October 1, 2026).
• Tax: CRA Income Tax Folio S3-F6-C1, interest deductibility; CRA on rental expenses.

Rates as of October 22, on approved credit and subject to change. Corrections: [email protected].

Frequently asked questions

What is the difference between renewing and refinancing a mortgage?

Renewing signs a new term with your current lender on the same balance and amortization, with no requalification and usually no cost. Refinancing replaces the mortgage with a new one so you can borrow more (up to 80% of your home’s value), change the amortization or consolidate debt; you qualify again at the stress test and pay legal and appraisal costs. Switching lenders at renewal is the third option: same balance, new lender, usually no stress test.

Can I refinance at renewal without a penalty?

Yes. On your maturity date there’s no prepayment penalty, so you can refinance with your current lender or a new one. Before maturity, breaking a fixed mortgage usually costs the greater of three months’ interest or the interest rate differential. A new lender can usually hold a rate for 90 to 120 days and fund on your maturity date.

Do I need to pass the stress test to switch lenders at renewal?

Usually not. An insured mortgage isn’t stress-tested again when it moves at renewal without new money or a longer amortization. Since November 21, 2024, a straight switch of an uninsured mortgage between federally regulated lenders is exempt too, as long as the balance (plus up to $3,000 for costs) and the amortization don’t increase. Adding money or extending the amortization makes it a refinance, which does need the stress test.

Can I add money to my mortgage at renewal?

Only by refinancing. You can borrow up to 80% of your home’s appraised value, minus what you owe, with your own lender or a new one. You’ll qualify at the higher of 5.25% or your rate plus 2%, pay legal and appraisal costs, and get the uninsured rate on the whole mortgage.

How much equity can I take out when I refinance in BC?

Up to 80% of the appraised value, minus your current balance. On a typical Kelowna house worth $1,056,700 with about $647,000 owing, that’s about $198,000. The exception is the insured secondary-suite refinance, which can go up to 90% of the finished value to build a suite.

How much does it cost to refinance a mortgage in BC?

Usually about $1,300 to $2,700: an appraisal ($300 to $500 or more), a lawyer or notary (about $900 to $1,500), sometimes title insurance, and land title fees, plus a penalty if you break your term early. There’s no property transfer tax on a refinance unless ownership changes.

Who pays the legal and appraisal fees when I switch lenders?

Often the new lender, on a straight switch. Ask before you apply, and check whether it’s paid as cash back you’d repay if you leave early. In BC, your old lender can charge no more than $75 to discharge the mortgage.

Does my mortgage renew automatically?

It can. Federally regulated lenders must send a renewal statement at least 21 days before your term ends, and it has to say whether the mortgage will renew automatically. Some lenders roll you into a short or open term at a higher rate if you don’t respond.

How early can I renew my mortgage?

Many lenders let you renew early without a penalty: RBC from 120 days before maturity and Scotiabank from six months, for example, and CIBC as early as 150 days for eligible borrowers. To switch lenders, start about 120 days out: a new lender can hold a rate and fund on your maturity date.

Can I switch lenders if my home value dropped?

If your mortgage is insured, usually yes: the insurance stays with the mortgage, though the new lender still has to approve you. If it’s uninsured, the new lender will value the home, and if you now owe more than 80% of it, you may not qualify for a switch at the best rates. Renewing with your current lender doesn’t depend on the value.

Can I extend my amortization at renewal?

Sometimes. On an uninsured mortgage your lender may allow it after a review; at a new lender it’s a refinance with the stress test. On an insured mortgage it can trigger a new insurance premium. Refinancing $378,933 from 20 to 25 years at 4.89% cuts the payment by about $247 a month but adds about $72,000 of interest.

Is a HELOC cheaper than refinancing?

To carry, often: a HELOC is usually prime plus about 0.50% (4.95% as of October 22), and you can pay interest only. But the rate is variable, the revolving part is capped at 65% of your home’s value, it has to pass the stress test, and interest-only balances tend to linger. A fixed refinance costs more to set up but pays the debt down.

Keep reading: renewals and refinancing

• How to switch lenders at renewal, step by step
• BC mortgage renewal checklist
• Should you refinance your mortgage?
• HELOC vs refinance for BC homeowners
• Refinancing to consolidate debt
• The mortgage stress test in 2026
• Financing a secondary suite
• The 2026 renewal cliff in Kelowna
• Refinancing in Kelowna
• Bank of Canada rate hike odds and your renewal

Get your renewal compared before you sign

Send me your renewal letter, your balance and what you want from the next five years, whether you’re in Kelowna, West Kelowna, Vernon, Kamloops or Metro Vancouver. I’ll put your lender’s offer next to switch and refinance options from more than 50 lenders, show you the five-year cost of each, and tell you whether a refinance is even possible on your equity. Today’s rates are on my rates page.

Call 250-859-2100 or book a free 30-minute call with your Kelowna mortgage broker. No credit pull until you say go, and on standard residential mortgages the lender pays my fee.

Keep reading: Renewals

• Mortgage Renewal in Kelowna: Don’t Auto-Sign Your Renewal Letter
• Mortgage Renewal BC: 12 Steps Before You Sign
• How to Switch Lenders at Renewal With No Penalty (Step-by-Step)
• The 2026 Renewal Cliff: What Kelowna Homeowners Need to Know