Is It the Right Time to Refinance? 5 Signs You Might Want to Make a Move
By Peter Park • April 2025
Mortgage Broker in British Columbia | Mortgage Basics
You know that feeling when you realize your phone plan is way more expensive than what your friends are paying? Mortgage refinancing can be a bit like that—except we’re talking thousands of dollars, not unlimited data.
Whether you're hoping to cut monthly payments, access equity for a renovation, or finally get rid of that pesky line of credit, refinancing can be a smart move—if the timing is right.
So how do you know when that is?
Here are 5 signs it might be the perfect time to refinance, along with real-world examples from clients I’ve helped across BC.
1. Interest Rates Have Dropped Since You Locked In
Why It Matters:
If mortgage rates have dipped since you signed your original loan—even by 0.5%—you could save thousands over your mortgage term.
💡 Case Example:
Jas and Aman from Surrey took out a 5-year fixed mortgage in 2021 at 5.39%. Fast forward to early 2025: rates have softened, and they were eligible for 4.35%. After crunching the numbers, they refinanced and are now saving over $270/month—that’s nearly $16,000 over five years.
⚠️ Keep in mind: It’s not just about the rate. Prepayment penalties, remaining term, and your future goals matter too.
✅ Pro Tip: If your rate starts with a “5” or higher, it’s time to check in—we might find you something sweeter.
2. Your Financial Situation Has Improved (Go You!)
Maybe you got that promotion, paid off your student loan, or finally stopped saying “sure, I’ll sign up” every time a store clerk offers a credit card. Whatever the case, a better financial profile = better mortgage terms.
💡 Case Example:
Sophie, a freelance graphic designer from Burnaby, came to me in 2022 with a 4.99% fixed rate. At the time, she had some credit card debt and limited savings. Fast forward to 2025: her business is booming, credit score jumped 100 points, and she now qualifies for a much better rate. We refinanced, freeing up cash flow and simplifying her finances.
✅ Pro Tip: Improved credit = more negotiating power. Don’t let your old mortgage hold you back from your new financial glow-up.
3. You’re Carrying High-Interest Debt
Credit card debt is like that unwanted guest who never leaves—and eats all your snacks. If you're juggling balances at 18–21%, refinancing can roll that debt into your mortgage at a much lower rate.
💡 Case Example:
Carlos and Lina from Coquitlam were paying over $1,000/month on credit card and line-of-credit debt. We refinanced their mortgage to include the debt at 4.35%, lowering their total monthly payments by $700/month. Bonus: their stress levels dropped too.
⚖️ Important: We always look at the total cost of borrowing. If there are penalties, we’ll do the math together to see if it’s still worth it.
✅ Pro Tip: Think of it as a financial spring cleaning. One payment, one lower rate, one big sigh of relief.
4. You Want to Tap into Home Equity
Home equity is like your home’s built-in savings account—especially if values in your area have gone up.
Reasons to Access Equity:
Home renovations (that add value)
Education costs
Investing in a business
Helping kids with a down payment
Or hey… finally building that dream kitchen island with the wine fridge 👀
💡 Case Example:
Emily and Jordan from Victoria wanted to finish their basement suite to rent out. We refinanced, accessed $80,000 in equity, and used the rental income to boost their mortgage qualification. Win-win.
✅ Pro Tip: You don’t have to break your current mortgage. A refinance or HELOC (Home Equity Line of Credit) may be possible—even mid-term.
5. Your Mortgage Is Up for Renewal (Don’t Auto-Renew!)
You wouldn’t accept a new phone contract without shopping around, right? Same idea here.
Lenders often send out bland renewal offers hoping you’ll say “sure, whatever.” But this is the perfect time to renegotiate—with no penalties.
💡 Case Example:
Brian, a self-employed contractor in Langley, was offered a 5.25% renewal rate from his bank. We helped him switch lenders and lock in a 4.35% rate, saving $300/month and giving him access to a prepayment option better suited to his fluctuating income.
✅ Pro Tip: Start exploring renewal options 4–6 months in advance. It gives us time to strategize—and maybe even get you cash back.
🎯 So… Should You Refinance?
Refinancing isn’t a one-size-fits-all decision. Sometimes it makes sense. Sometimes it doesn’t. That’s why I offer free, no-pressure consultations—we’ll run the numbers together and see what’s best for you.
🧠 Bottom Line: If your goals include saving money, paying off debt, or accessing equity, refinancing might be your best next move.
💬 Let’s Talk (Before That Renewal Letter Collects Dust)
📅 Book a free strategy call: Schedule here
📧 Or drop me a line at [email protected]
📱 Prefer texting? No problem—just say the word.
You’ve worked hard for your home. Now let’s make sure your mortgage is working hard for you.
