London & Southwestern Ontario
Mortgage Refinancing in London, Ontario
Refinancing replaces your existing mortgage with a new, larger one and pays out the difference in cash. Done for the right reason it lowers your overall cost of borrowing; done reflexively it just re-amortizes yesterday's spending over 25 years.
This page covers both sides honestly.
Nandan Bajani · Mortgage Agent Level 1 | Ontario · The Mortgage Firm Inc.
Today's rates before you refinance
As of October 23, 2026
- Fixed
- 4.34%
- 5-Year term
- Variable
- 3.43%
- 5-Year term
- Prime
- 4.45%
- Bank of Canada
These are insured purchase rates. Refinances can't be insured, so expect your rate to sit a little above them.
Compare all 8 terms & inquire
London, Ontario — Daily Update
Compare Today's Mortgage Rates
As of October 23, 2026
Bank of Canada overnight rate 2.25%, prime 4.45%
2-Year
Fixed
4.39%
Big 6 Bank
Variable
—
3-Year
Fixed
4.49%
Canadian Lender
Variable
3.90%
Alterna Savings
5-Year
Fixed
4.34%
Canadian Lender
Variable
3.43%
Canadian Lender
Rates shown are for insured mortgages (down payment under 20%). Conventional/uninsured pricing may differ — contact me for your exact rate.
Rates are illustrative, change daily and are subject to lender qualification. Source: Ratehub.ca public rate table, as of October 23, 2026.
Plan your numbers
Run Your Numbers
From equity to closing
How a Refinance Comes Together
- 1
Estimate your equity
Appraised value × 80%, minus your current balance
- 2
Apply & appraisal ordered
An appraiser confirms today's value
- 3
Full re-qualification
Income, credit and the stress test, same as a new mortgage
- 4
Costs confirmed
Appraisal, legal fees, any mid-term penalty
- 5
Funds released at closing
Lawyer disburses, existing mortgage discharged
How much equity you can access
Conventional refinances are generally limited to 80% of the appraised value of the property.
Outside the secondary-suite program below, mortgage default insurance is not available on refinances, so the 80% ceiling is firm with prime lenders.
An appraisal is almost always required, and it is the appraised value — not your estimate or a neighbour's sale price — that sets the number.
80%
Maximum loan-to-value on a conventional refinance
Documents You'll Need
Recent pay stubs or T4s/Notices of Assessment
Government-issued photo ID
Current mortgage statement and discharge statement
Proof of property tax and home insurance
Documentation for the funds' purpose where relevant, such as renovation quotes or debt statements
The secondary-suite exception: up to 90%
Homeowners can refinance up to 90% of their home's value if the extracted equity is used to build a legal secondary rental suite or accessory dwelling unit.
This insured refinance program allows up to a 30-year amortization and carries a default insurance premium.
It can suit multi-generational living or creating a rental income stream, but the suite has to meet local zoning and building rules, so confirm with the City of London before you budget around it.
Reasons that usually hold up
Reasons that usually hold up
Consolidating credit card or unsecured line-of-credit balances carrying much higher interest
Funding renovations that you'd otherwise put on credit at a far higher rate
Down payment for a second or investment property, where the overall plan makes sense
Divorce or separation buyouts requiring one party to be removed from title
The costs to weigh
The costs to weigh
Breaking mid-term triggers a prepayment penalty — three months' interest on most variable mortgages, or the greater of that and an interest rate differential on fixed.
Add appraisal, legal fees and possibly a discharge fee. If the penalty is large and your maturity is close, waiting for renewal is often the better call.
When refinancing is the wrong tool
When refinancing is the wrong tool
If the underlying issue is ongoing overspending, consolidating debt into the mortgage without changing the pattern typically leads to the cards filling back up while the mortgage is now larger.
Refinancing also stretches short-term debt over a long amortization, which lowers the monthly payment but can raise total interest paid unless you keep payments up.
Related reading
Questions people ask
How much can I refinance my London home for?
Generally up to 80% of the appraised value with prime lenders, less your existing mortgage balance.
Will I pay a penalty to refinance?
If you break mid-term, yes. The amount depends on your rate type and lender formula, so it should be quoted in writing before you decide.
Does refinancing require re-qualifying?
Yes, including the stress test with federally regulated lenders. Alternative lenders have different criteria and different costs.
Refinance or HELOC?
A refinance suits a defined lump sum at a lower rate; a HELOC suits ongoing, unpredictable draws. Combination products can do both.
How long does a refinance take?
Often a few weeks from application to funding. The steps are an application and documents, a lender approval, an appraisal of your home, and a signing with your lawyer, who pays out the old mortgage and any debts being consolidated.
What does it cost to refinance?
The main costs are any prepayment penalty if you're mid-term, an appraisal, and legal fees to register the new mortgage and discharge the old one. Compare those costs with the interest you'll save or the cash flow you'll gain before you decide.
Can I refinance to pay off credit cards and loans?
Yes, as long as the new mortgage stays within about 80% of your home's appraised value and you qualify for the new payment. Rolling high-interest debt into the mortgage usually lowers the monthly cost, but stretching it over a long amortization can raise the total interest unless you pay it down faster.
Find out what refinancing would actually cost you
A short conversation is usually enough to know what's realistic. No obligation, no pressure.