HELOC vs Refinance Ontario. Which Saves More?

A refinance suits a fixed lump sum, while a HELOC suits flexible, ongoing access. It depends on your current mortgage rate, remaining term, and equity position, and the IRD penalty and legal fees can change the math. We model both for your exact file.

A standalone HELOC is capped at 65% LTV. Combined with your mortgage, total borrowing can reach 80% LTV through a combo product. So on a $800K property with $400K mortgage, you could access up to $240K through a HELOC.

The Interest Rate Differential (IRD) is the penalty for breaking a fixed-rate mortgage early. It's the greater of 3 months' interest or the present-value difference between your current rate and today's rate. On larger mortgages, an IRD penalty can run into the tens of thousands of dollars.

Traditional HELOCs require good credit (650+) and A-lender qualification. If your credit is below that, a cash-out refinance through a B-lender may be more accessible, though at a higher rate.

A standard HELOC or refinance takes 2 to 4 weeks from application to funding, including appraisal time. We can expedite in urgent situations.

Yes. Using a HELOC on your primary residence as a down payment for an investment property is a common and legitimate strategy in Ontario. We help structure both the HELOC and the investment property mortgage.

A refinance replaces your first mortgage at a new rate and term. A second mortgage adds a new loan behind your existing first mortgage. A refinance is usually cheaper if your existing rate is close to current rates.

Most lenders require a current appraisal. We manage the appraisal process through approved appraisers. Cost varies by property and is disclosed upfront.