What Does It Cost to Refinance in Canada?
By Tiffany Quaye · Last reviewed 2026-08-01
The short answer
Expect roughly $1,500 to $2,500 in legal, appraisal and discharge costs, plus any prepayment penalty if you break your term early. Some lenders cover part of these costs in exchange for a slightly higher rate. Your break-even is total cost divided by monthly savings.
The line items
| Cost | Typical range |
|---|---|
| Prepayment penalty (mid-term) | 3 months' interest or IRD — varies widely |
| Legal fees and disbursements | $900 – $1,500 |
| Appraisal | $300 – $500 |
| Discharge fee | $200 – $400 |
| Title insurance | $250 – $500 |
Ranges are illustrative and vary by province, lender and property. Your actual quote will be specific to your file.
Working out break-even
If refinancing costs $7,000 all-in and reduces your monthly outflow by $850, you're ahead within nine months on a cash-flow basis. If it costs $7,000 and saves $150 a month, that's nearly four years — and worth reconsidering.
Questions people ask
Can refinance costs be added to the mortgage?
Usually yes, as long as the total stays within the 80% loan-to-value limit. That keeps cash out of pocket at zero.
Are there no-cost refinances?
Some lenders cover legal and appraisal costs in exchange for a slightly higher rate. Worth modelling both ways — over five years the higher rate may cost more than the fees.
Want this applied to your actual numbers?
Articles are general. Your file isn't. Bring your balances and your renewal date and I'll tell you what I'd do in your position.
Related reading
Not sure which option fits your situation?
Bring your numbers — mortgage balance, balances you're carrying, and what's stressing you out. I'll walk you through what's realistic, including when doing nothing is the better call.