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Refinancing your home mortgage can help you make your home suit your current or future lifestyle life

Updated: May 12, 2022 4 min read

Work life has changed for many of us. If you’re working from home, chances are this may have you dreaming of a home office that doesn’t double as the dining room. Refinancing your mortgage may be the answer to accessing cash so you do things like renovation or debt consolidation.

What is refinancing?

Refinancing is tapping into the equity built up in your home—the difference between your home’s value and what you owe on your mortgage—to help you afford a goal like a renovation. You can apply to increase your mortgage up to 80% of the appraised value of your home to access these funds.

What documents do you need to refinance?

Here’s what you’ll need for income verification and to show assets and liabilities:

For Salaried Employees

  • Last two recent paystubs
  • T-4 from previous year
  • Most recent Notice of Assessment (NOA) from the Canada Revenue Agency (CRA)
  • An employment letter showing your current position, time with company, hours and current salary may work in some cases

For Retirees

  • T4A(s) from previous year and a statement or screenshot showing your regular monthly pension deposits
  • Most recent NOA from the CRA
  • Statement or screenshot of any current balances of all Retirement Savings, TFSAs and non-registered savings and investments

For Sole Proprietors, Incorporated Business Owners and Seasonal/Commission-based Employees

  • Personal tax returns for the last three years
  • Corporate Financial Statements for the last three years (if incorporated)
  • Most recent paystub showing year-to-date earnings (if seasonal/commission)
  • Last three years of corresponding NOAs from the CRA, including the statement of account to show the personal taxes have been paid

For Rental Income

  • A copy of the existing rental agreement
  • Current year T1 general including the statement of real estate if the rental has been in place for more than the current year

Assets and Liabilities

  • Current statement or a screenshot of RRSPs, TFSAs, GICs, mutual funds or any other investments
  • Copy of any work or private insurance copies providing life, disability or critical illness coverage
  • Detailed listing of all assets you own such as property, vehicles, boats, trailers, etc.
  • Most recent Property Tax notice and a recent mortgage statement or screenshot showing balance and payment amount for all properties you own

According to Andrea McCaw, Mobile Mortgage Manager with Coastal Community, “You need to remember a refinance is a brand new application. You have to requalify for the total amount of your existing mortgage and the new funds you want to borrow. I’d be happy to help you see if now is the right time to access some of your hard earned equity in your home to make that reno happen or to consolidate other outstanding debt into a lower rate and payment.”


Other topics to explore:

 Getting ahead in the home buying game

 Turn your business debt into an asset

 How much will my home really cost

 Paying off debt while saving for retirement