How Much Can I Borrow When Refinancing My Home?

Short answer: Most lenders let you refinance up to 80% of your home’s appraised value, minus your current mortgage and any secured lines of credit. Your income must also support the new payment under the stress test. You can borrow the lower of what your equity allows and what your income supports. Refinancing to add a secondary suite can allow up to 90% on an insured mortgage.

Two Questions Lenders Ask

1. How much equity do you have?
2. How much debt can your income safely support?

Step 1: Your Equity

Equity = home value minus mortgage minus secured debts.

Example: $600,000 value, $360,000 mortgage, $20,000 HELOC = $220,000 equity. At 80% of value you could owe up to $480,000 in total, so about $100,000 of new money is potentially available.

The secondary suite exception

Since January 15, 2025, homeowners refinancing to add a secondary suite, such as a legal basement suite or garden suite, may be able to borrow up to 90% of value on an insured mortgage. Eligibility rules apply and the unit can’t be a short term rental.

Step 2: Income and Debt Ratios

Lenders look at your income (employment, self employment, pension, rental), your debt service ratios including the new payment, property tax, heat and other debts, and your credit. The stress test applies.

Step 3: Purpose of the Funds

Debt consolidation, renovations, a separation buyout or investing. A clear, documented purpose helps.

Step 4: Property Type and Location

Standard homes and condos are easiest. Unique properties, rentals or remote areas can face tighter limits.

Step 5: Timing

At renewal you avoid penalties. Mid term usually means a penalty.

→ Read more: Refinancing Penalties: How They Work

What Usually Limits You

1. Not enough equity
2. Income and ratios
3. Lender appetite for the property
4. Cost vs benefit after penalties and interest

How Much Should You Borrow?

Even if you qualify for more, ask whether the payment fits your budget, whether you’ll still have a buffer, and whether it improves your finances. Borrowing just what you need is often wiser.

How We Help

We estimate your equity, run your qualification and show both the maximum and the comfortable amount. Book a call.

This article is general information, not personal financial advice. Rates, rules and programs change. Talk to a licensed mortgage broker about your situation. Lacroix Mortgage Group is licensed and powered by Mortgage Connection Inc.