5 Key Factors that Affect Mortgage Refinancing Rates in Calgary

When seeking to lower your interest rates, reduce monthly payments, consolidate debt or access equity, mortgage refinancing is a smart move for many Calgary homeowners.

There are, however, several factors that influence the mortgage refinancing rates in Calgary, and understanding those can help you make informed decisions. 

Factors Affecting Mortgage Refinance Rates Calgary-

• Credit Score – Your credit score plays a key role in determining the interest rate lenders will offer when you refinance your mortgage. A higher credit score showcases you as an eligible borrower which can result in a lower rate. Before refinancing it is imperative to check your credit report for errors and pay off outstanding debts to improve your score.
• Loan-to –Value Ratio: The loan-to-value ratio compares the amount of the mortgage you are refinancing to the appraised value of your home. A lower loan-to-value ratio means you have more equity in your home, which reduces the risk of the lender and typically results in better rates. With minor improvements, boost the value of your home before refinancing to potentially lower this ratio.
• Interest rate trends and market conditions: The current economy state and the broader interest rate trends, directly influence mortgage refinancing rates in Calgary. If the bank raises its key interest rates, lenders often follow suit, increasing mortgage interest rates. Consult a professional mortgage broker in Calgary to understand Calgary mortgage interest rate trends and the timings that affect your refinance rate.
• Employment and Income Stability: One of the best Calgary mortgage refinancing tips is to have a stable and sufficient income to repay your refinanced mortgage. Having a steady job and consistent income boosts the chances of qualifying for a lower rate. Be ready with your recent pay stubs, tax returns or income proof if you are self-employed.
• Type and Term of Mortgage: The type of mortgage and term length you choose can impact your refinancing rate. Shorter-term mortgages have lower rates than long-term ones but come with higher monthly payments. Fixed-rate mortgages provide security, and the variable rates might be lower in the beginning but carry more risk. Consider your financial goals. If you plan to stay in the home for a long time, then a fixed rate might be best and if not a variable rate could save money in the short term.

Mortgage refinancing in Calgary can be a great way to improve your financial situation. It is however important to understand the key factors that affect the rates you are offered. When seeking how to refinance a mortgage in Calgary, it is important to work with a professional mortgage advisor who will help you explore options and find the best path forward.

To avail the best mortgage refinance rates in Calgary 2025, improve your credit score, maintain job stability and timing your refinance strategically and secure a deal that aligns with your financial goals.