Overview
Mortgage refinancing rates in Canada as of July 2025 are somewhat elevated, reflecting ongoing volatility in the bond market and the Bank of Canada’s steady overnight rate policy. Homeowners considering refinancing should pay close attention to both rate trends and the potential costs/penalties involved.
Current Canadian Mortgage Refinancing Rates
Typical Refinance Rates (July 2025)
- Variable refinance rates: ~4.4% at brokerages; higher at major banks.
- Fixed refinance rates: Some brokerages offer just below 4.4%; larger banks typically post higher rates.
- Rate range across lenders: 3.69% to 5.85% for 5-year terms, depending on institution and borrower profile.
- Best-insured fixed rates (for highly qualified borrowers): 3.84%–3.89% for 3-5 year fixed.
Rate Comparison Table
| Product Type | Lowest Broker Rates | Big Bank Rates (Examples) |
|---|
| 5-Year Fixed Refinance | ~4.4% | 4.49% (RBC), 6.13% (NBC) |
| 5-Year Variable Refinance | ~4.4% | 4.55% (RBC) |
| 3-Year Fixed Refinance | ~3.84%-4.4% | 4.44% (RBC) |
| 5-Year Fixed (Best Insured) | 3.84%-3.89% | — |
Rates as of July 2025.
Major Canadian Bank Offerings
- RBC: 5-year fixed at 4.49% (special offer), 5-year variable at 4.55% (Prime - 0.40%).
- National Bank: 5-year closed fixed at 6.13%.
- Note: Brokerages often undercut major bank posted rates, especially for insured and high-ratio mortgages.
Why Refinance Rates Are Higher
- Lender risk: Refinancing can increase risk for lenders due to extended amortization or increased loan amounts.
- Profit protection: Higher rates and prepayment penalties help mitigate potential losses when borrowers refinance at lower rates.
Refinancing Methods and Costs
- Breaking your mortgage: End current contract early for a new one; incurs a prepayment penalty (commonly three months' interest).
- Home Equity Line of Credit (HELOC): Allows access to home equity with lower rates than unsecured credit, but higher than best mortgage rates.
- Blend & Extend: Combine current rate with new funds at market rates; usually higher than the most competitive refinance rates.
Provincial Variations
- No significant differences in posted refinance rates across provinces, but:
- Land transfer taxes, legal fees, and other closing costs may vary.
- Regulations on prepayment penalties and HELOCs can differ slightly, particularly in Quebec and BC.
Government Programs & Incentives
- No direct federal incentives for refinancing, but federal and provincial governments offer programs for first-time buyers and energy-efficient renovations.
- CMHC insurance: Only for purchases (not refinances), but some lenders offer competitive "insurable" rates for low-risk borrowers.
Actionable Recommendations
- Compare rates: Use brokerage platforms like theratefinder to find and compare mortgage refinance rates from leading Canadian lenders.
- Calculate penalties: Always factor in prepayment penalties and legal costs before refinancing.
- Consider timing: Fixed rates are under upward pressure due to rising bond yields; acting sooner may lock in a lower rate.
- Get personalized advice: For tailored refinancing solutions, start your application with theratefinder, which offers a multi-step process and access to competitive lender rates. Begin at theratefinder.ca/onboarding.
Summary
- Mortgage refinancing rates in Canada (July 2025) range from 3.84% to 5.85%, with brokerages often offering lower rates than major banks.
- Variable rates are currently stable due to a steady Bank of Canada overnight rate, but fixed rates are rising as bond yields climb.
- Refinancing costs (prepayment penalties, legal fees) can be significant—calculate your break-even point.
- Use platforms like theratefinder to compare rates, estimate refinancing costs, and access a wide network of Canadian lenders for personalized solutions.