Should You Refinance Your Mortgage in 2025? A Practical Guide
If you’re a Canadian homeowner wondering whether refinancing makes sense this year, you’re not alone. With interest rates shifting, debt loads rising, and home equity growing, 2025 might be the perfect time to revisit your mortgage strategy.
What Does Refinancing Mean?
Refinancing is when you replace your current mortgage with a new one — ideally with better terms. It can be a smart move if you want to:
Lower your monthly payments (use my mortgage calculator to see potential savings)
Access cash from your home equity
Consolidate high-interest debts into one manageable payment
Change from a variable to a fixed rate (or vice versa)
Free up funds for major expenses, like renovations or education
Learn more about my refinancing services..
Why Homeowners Are Refinancing in 2025
1. Interest Rate Trends
The Bank of Canada has made several rate changes over the past two years. Even a small drop in rates could save you thousands over the life of your mortgage.
2. Home Equity Growth
Home values in BC and Alberta remain strong. If you’ve built equity, refinancing allows you to access it for renovations, investments, or big expenses.
3. Debt Consolidation
Carrying balances on credit cards or loans at 20%+ interest? Refinancing can roll that debt into your mortgage at a much lower rate — saving you money and stress.
4. Lifestyle & Future Planning
Sometimes it’s not just about rates, it’s about life. A growing family, education costs, or retirement planning can all benefit from a refinancing strategy that frees up cash flow for what matters most.
Key Factors to Consider Before Refinancing Your Mortgage in Canada
Penalties: Breaking a mortgage early often comes with fees. The savings should outweigh the costs.
Timeline: If you’re selling soon, refinancing may not make sense.
Qualification: Lenders still look at your income, credit, and debt ratios.
How to Know if Refinancing is Right for You in 2025
There’s no one-size-fits-all answer — it depends on your current mortgage, your goals, and today’s rates. That’s where professional advice comes in.
FAQs About Refinancing in Canada
Can I refinance if my credit isn’t perfect?
Yes, but options may be limited. Some lenders offer solutions for less-than-ideal credit.
Is refinancing worth it if I only have a few years left on my mortgage?
Often not, since penalties could outweigh savings. But it’s worth running the numbers.
Can I use refinancing to access equity for renovations or investments?
Absolutely. Many homeowners in BC and Alberta use equity for home upgrades, rental properties, or education costs.
How much does it cost to refinance in Canada?
Costs vary depending on your lender, penalties, and legal fees — typically a few thousand dollars.
Ready to See If Refinancing Makes Sense for You?
Curious if refinancing could save you money? Reach out for a free equity and refinancing analysis. I’ll crunch the numbers, compare lenders, and give you a clear picture of your options.
📞 604.771.4085
📧 rob@skoko.ca
🌐 skokomortgages.ca
