Reviewed by Micky Khaneka, licensed mortgage broker
Refinancing a Toronto mortgage means replacing or changing the current loan, often to take equity out or to reset the payment. If the term is not over, the penalty comes first.
MKG Mortgages reads the existing charge, the penalty, and what the money is for before recommending a new mortgage.
Illustrative prepayment penalty estimator. It compares three months of interest with a simplified interest-rate differential. The lender's figure governs.
A refinance can change the lender, the remaining amortization, or the amount you owe. MKG gets the penalty from your current lender before anyone treats equity as cash. If the penalty is larger than the reason for the new mortgage, the file can wait for renewal.
A Leslieville house appraised, for this illustration, at $1,400,000 with $610,000 still owing. A refinance to $840,000 would advance about $230,000 before costs. If the penalty to break the term is $14,000, the cash in hand is closer to $216,000, and the new mortgage at an illustrative 4.7% over 25 years is about $4,760 a month.
These are the kinds of refinancing files we structure in Toronto.
Illustrative example
The challenge. They wanted one mortgage sized to a quoted renovation, not a series of cards.
How MKG structured it. We reviewed the penalty, the equity, and the quote, then refinanced to a single payment that covered the work.
Illustrative example
The challenge. A lower payment only helped if it cleared the cost of breaking the term.
How MKG structured it. We put the penalty beside the new payment and proceeded when the refinance still made sense for their goal.
Illustrative example
The challenge. They wanted a defined amount, with the house staying their home.
How MKG structured it. We sized the new mortgage to that amount and the payment they could keep.
If the term is still running, the penalty is part of the math.
Downtown and Liberty Village condos can be limited by the building, not just the equity. Leslieville and The Annex houses often have renovations a lender wants described. Midtown, Etobicoke, and Scarborough files are more often freehold, where the appraisal and the use of funds drive the amount.
Downtown and Liberty Village condos can be limited by the building, not just the equity. Leslieville and The Annex houses often have renovations a lender wants described. Midtown, Etobicoke, and Scarborough files are more often freehold, where the appraisal and the use of funds drive the amount.
The note below is paraphrased from a public Google review. It is one client's experience, not a promise that the next file ends the same way. A rate in a client's words is not an offer from MKG. The lender still decides.
A homeowner who refinanced wrote that the team stayed with the file through each step and kept the process understandable.
Paraphrased from a public Google review of MKG Mortgages. Names and identifying details are left out.
Micky Khaneka is a licensed mortgage broker, FSRA M21002608, at FLOW Lending Group, Brokerage #12864. Canadian Mortgage Professional named him to the CMP Top 75 for 2026, at number 15 in Canada. The lender still decides. The lender still decides.
Micky Khaneka, licensed mortgage broker, M21002608, FLOW Lending Group, Brokerage #12864
The firm serves clients in English, Hindi, Punjabi and Bengali.
Elite Hall of Fame
CMP Top 75 Broker 2026
President's Platinum Club – Top 1%
Pinnacle Club – Top 0.5%
People ask how refinancing works on a Toronto property, and what documents come first. The short answers below stay on this page. The lender still decides, and the office is in North York. The lender still decides. Any example figure is illustrative.
Sometimes. The penalty, the condo documents, and how much equity the building will support all have to be known first. A low rate on paper can lose to the penalty.
The lender, the rate, the remaining amortization, or the amount borrowed. It is not the same as signing the renewal form your current lender mailed.
We ask the lender for the figure and subtract it from the benefit. If the penalty eats the reason for the refinance, we say so.
Only when the lender accepts it and the unit is legal for that purpose. We do not add rent to the application because the space is finished.
Homeowners whose term is ending, or whose penalty is small enough that a new rate still helps. A lower rate with a long new amortization can also raise the interest you pay over time. We show both.
The other services in this list each have a Toronto page. Open the one that matches the file, whether that is a purchase, a refinance, a renewal, a consolidation, self-employed income, or a private mortgage. The lender still decides. The lender still decides.
The Toronto hub names the neighbourhoods, the housing that shows up, and a local example. It links back to these service pages. The office that handles the file is in North York, and the lender still decides. The lender still decides.
Toronto area hubRefinancing is written for each city MKG serves, not only Toronto. The local page changes the neighbourhoods and the example. The rules of the product stay the same, and the lender still decides. The lender still decides. Any example figure is illustrative.
Send the agreement or the mortgage statement for the Toronto property, or book a call. The first conversation is free. It is a review of this file, not an approval, and the office that handles it is in North York.
Sources. FCAC — mortgages · OSFI Guideline B-20 Published rules change. Read the current page, and confirm tax with your lawyer, before you rely on a figure.
Any rate or payment mentioned is illustrative and on approved credit (OAC). It is not a quote, a commitment, or a current offer.