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What is Mortgage Refinancing?
Refinancing allows you to withdraw equity from a property you already own. However, at least 20% equity must remain in the home.
How Much Equity Can You Access?
To calculate your potential refinance amount:
a) Home Value × 80% = Maximum Loan Amount
b) Maximum Loan Amount – Existing Mortgage/Loans = Available Equity ("Y")
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If "Y" is positive, that is the amount you may be able to withdraw (subject to lender approval).
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If "Y" is negative, there is not enough equity to refinance at this time.
Legal & Appraisal Costs for Refinancing
Refinancing requires new legal documents and title re-registration. This can be done through:
a) FCT (First Canadian Title) or FNF (FNF Canada) – These are not lawyers but can process legal documents for refinances. Estimated cost: $1,500 - $2,000.
b) Lawyer – If a lawyer is required to complete the transaction, budget approximately $2,000 - $2,500.