Refinance your mortgage
If some time has passed since you purchased your home and you would like to lower your monthly mortgage payment, change the terms of your loan or consolidate debt1, you may want to consider refinancing.
What is refinancing a mortgage?
A mortgage refinance is when you replace your current mortgage with a new one, usually with a new term and interest rate. Doing this can help you get a lower interest rate, pay off debt or access the equity that you’ve built up in your home.
Unlock the power of refinancing
Save money
Refinancing at a lower interest rate, even by a single percentage point, can reduce your monthly payments and save you thousands over the life of the loan.
Pay off your loan faster
If your lifestyle has changed, you may be able to refinance to a shorter term. This will help pay off your loan faster and reduce interest over time.
Take cash out
Whether it’s tuition, a wedding or home renovations, refinancing lets you access your home’s equity to fund life’s big moments.
Refinance options with BMO2
Reach your goals faster with our flexible refinance options.
Rate and Term Refinance
Replace your current mortgage with a new one that has a different interest rate and term length. This is the most popular option.
Take advantage of a lower interest rate and reduce your monthly mortgage payment - Shorten the term of your mortgage to pay it off faster
- Shortening your mortgage term can accelerate your payoff date
Cash-out Refinance
Take out a new mortgage2 loan that will pay off your current mortgage, and cash out the remaining equity in your home as a lump sum.
- Use the funds to pay for tuition, home renovations, weddings or other major expenses
- Improve your finances and boost your credit by paying off your debt and credit cards
- Choosing a fixed-rate mortgage can make budgeting easier, as you’ll know exactly how much your monthly payments will be
Explore our mortgage rates
Our friendly, knowledgeable mortgage specialists are here to help you find your personalized rate. No pressure, no judgment, just clear answers to your questions.
How to refinance your mortgage
Refinancing may be a smart way to improve your financial situation. Take the right steps to get there.
Access your finances
Review your credit score, home equity and current mortgage terms - this will help determine the monthly payment options and possible terms available to you. Speak to a mortgage specialist at 1-888-482-3781 who can help guide you through this step.
Review your options
If you’ve found a lower interest rate or better loan terms, a rate-and-term refinance is a great option. If you have significant equity in your home, a cash-out refinance can help you consolidate debt1.
Apply and prepare to close
Gather necessary documents such as tax returns, pay stubs and bank statements. Submit your application, complete the appraisal process if required and finalize the loan at closing.
Switching to BMO is simpler than you think
If you’re looking to refinance, we make it easy. With a straightforward application process and expert support, we’ll handle the details so you can focus on what matters. Make the switch today.
CALL 1-888-482-3781
Calculators
Calculate your mortgage payments with ease using our most popular calculators.3
Calculate your long-term savings and monthly payments when you refinance your home.
Estimate your refinancing costs to make informed decisions about your mortgage.
Compare mortgage loans and find out which option will save you more money.
Helpful articles, tips and advice
What it means to refinance your mortgage
Learn all about mortgage refinancing - what it is, how it works, and why it may be worth alook.
When to refinance your mortgage: How to know when the time is right
There can be a lot of benefits to refinancing your mortgage — but you have to get the timing right. Here’s how you can tell if it’s the right time to refinance.
What is debt-to-income ratio and how does it affect your mortgage application?
Your debt-to-income ratio is one of the most important factors lenders look at when you apply for a mortgage. Learn how to calculate your DTI and get tips on improving it.
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Refinance your mortgage frequently asked questions
As you pay off your mortgage you build equity in your home.
To calculate your equity:
- Find out how much your home is worth in the current market (not what you originally paid)
- Check your remaining mortgage balance (how much you still owe)
- Subtract your mortgage balance from your home’s current value
Refinancing lets you borrow up to 80% your home’s value, minus what you still owe on your property. For example, if your house is now worth $300,000, you may be able to refinance and borrow up to $240,000 (80% of your home value).
The right time to refinance depends on your financial goals. Many homeowners choose to refinance when interest rates drop, their credit score improves or they need to access home equity.
Refinancing is often ideal toward the end of your loan term to avoid extra costs, but you can refinance at any time. If you refinance before your current mortgage term is up, you may face prepayment penalties or closing costs but depending on your situation, the long-term savings could still make it worthwhile.
The cost of refinancing your mortgage depends on several factors. Here are some common fees to consider:
Prepayment penalty: If you refinance before the end of your loan term, you may face a penalty depending on your lender and loan agreement.
Loan Application Fees: There is an application fee that goes towards total costs and an underwriting fee
Closing Costs: These can include underwriting, application, and processing fees, typically ranging from 2%-5% of the loan amount.
Title Search & Insurance: To ensure there are no legal claims against the home, a title search and insurance may cost $500-$1,000.
Appraisal Fees: Lenders may require a home appraisal to determine its current value, typically costing around $300-$600.
Attorney Fees: Some states require an attorney for closing, with fees ranging from $500-$1,500.
Refinancing a mortgage typically takes 30 to 45 days, but the timeline can vary based on factors like lender processing times, appraisal scheduling and document verification. To help the process go as smoothly (and quickly) as possible, make sure that you have all your application information handy, understand the process and do your research ahead of time.
Special offers are subject to change.
Footnote 1 Please consult with your financial advisor for the benefits and drawbacks between unsecured debt and secured debt and the protections each provide the consumer.
Footnote 2 Relationship Requirement: If the property is not located in the following locations; Arizona, California, Colorado, Florida, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Utah, Washington, Wisconsin, Wyoming, and El Paso County, Texas (Home Equity is not available in Texas) to be eligible for our real estate secured lending products, you must be a pre-existing BMO customer for at least six months at the time of application; contact a Banker for details. A BMO customer relationship includes any deposit, retirement, small business, secured and unsecured credit, and investment accounts (BMO Alto accounts are excluded). Not applicable to our Private Bank clients or BMO employees.
Footnote 3 Calculator is provided by Leadfusion Inc., which is not affiliated with BMO . The calculator provides estimates. We do not guarantee their accuracy or applicability to your circumstances. Results depend on many factors, including the assumptions you provide. Leadfusion may have different privacy and security standards than BMO. Visit its website at www.leadfusion.com to review its privacy policy.
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