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Refinancing Steps

Refinancing Steps

Refinancing3 min readFebruary 11, 2026
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The mortgage refinancing process in Quebec follows a structured path with several distinct steps, from initial analysis through to fund disbursement. The first step involves consulting an AMF-certified mortgage broker who will assess refinancing feasibility based on your financial situation, equity, and OSFI rules. The broker then submits your file to one or more lenders to obtain conditional approval. The lender will require a professional property appraisal to confirm market value. Once final approval is obtained, the file is forwarded to a notary, a mandatory step in Quebec under the Civil Code of Quebec (CCQ) for preparing the mortgage deed. The notary verifies titles, prepares documents, and coordinates fund disbursement with the lender. The entire process generally takes 3 to 6 weeks, depending on file complexity and notary availability. Timelines may be longer if the property appraisal reveals issues or if additional documents are required. CMHC does not insure refinances, meaning the loan-to-value ratio cannot exceed 80% of market value. The OSFI stress test applies to all refinances in Canada.

The Steps of Mortgage Refinancing in Quebec

Whether you are refinancing for a better rate, to access equity, to consolidate debts, or to switch mortgage products, the refinancing process in Quebec follows a well-defined path. Understanding each step will help you prepare your file efficiently and minimize delays. This guide walks you through the entire process, from initial consultation through to fund disbursement.

Step 1: Consultation and Feasibility Analysis

The first step involves meeting with an AMF-certified mortgage broker in Quebec. The broker will assess your overall financial situation: income, existing debts, credit score, estimated property value, and current mortgage balance. They will calculate your available equity based on the maximum 80% loan-to-value ratio mandated by OSFI. They will also analyze your current mortgage's prepayment penalty to déterminé whether refinancing is financially advantageous. This consultation is generally free because the broker is compensated by the lender.

  1. Gather your documents: Before your first meeting, prepare: your most recent pay stubs or income proof, your fédéral (T1) and provincial (TP1) tax assessments, your current mortgage statement, your debt statements, proof of home insurance, and a photo ID.
  2. Obtain your penalty statement: Contact your current lender to request an official prepayment penalty statement. This document indicates the exact penalty amount as of the current date. The amount can vary daily depending on the balance and prevailing rates.
  3. Define your objectives: Clearly define why you want to refinance: rate reduction, equity access, debt consolidation, product change. Your broker will tailor their lender search based on your specific objectives.

Step 2: Application and Conditional Approval

Once your file is complete, your broker will submit it to one or more lenders whose products match your needs. The lender will perform a credit check (hard pull) and analyze your debt service ratios: the gross debt service ratio (GDS) must not exceed 39% and the total debt service ratio (TDS) must not exceed 44%, per OSFI guidelines. You will also need to pass the stress test at the contractual rate + 2% or 5.25% (whichever is higher). Conditional approval is generally obtained within 3 to 5 business days.

Step 3: Property Appraisal

The lender will almost always require a professional appraisal of your property to confirm its current market value. A certified appraiser will conduct a visual inspection of your property and compare it with recent sales of similar properties in your area. The appraisal report directly determines the maximum refinancing amount (80% of the appraised value). The appraisal cost, generally between $300 and $500 in Quebec, is borne by the borrower. The timeline for receiving the report ranges from 5 to 10 business days depending on appraiser availability in your region.

Step 4: Final Approval and Transfer to Notary

Once the appraisal is received and all conditions are met, the lender issues final approval (firm commitment). The mortgage instructions are then transmitted to the chosen notary. In Quebec, the Civil Code of Quebec (CCQ) requires that any immovable hypothec be constituted by notarial deed in minute form. The lender may also require repayment of certain debts before disbursement, especially in consolidation files.

Step 5: Notary and Signing

The notary plays a central role in Quebec refinancing. Their responsibilities include: verifying property titles at the Quebec Land Registry, preparing the immovable hypothec deed, discharging the old mortgage if you are switching lenders (release), calculating and adjusting property tax, and coordinating disbursement with the lender. The deed is signed in person at the notary's office. Notary fees for refinancing in Quebec generally range from $1,000 to $2,000, depending on file complexity.

Step 6: Fund Disbursement

After signing and publication of the deed at the Land Registry, the notary coordinates fund disbursement. The lender sends funds to the notary in trust. The notary repays the former lender (including the penalty), pays off debts being consolidated if applicable, and remits the net balance to you. Funds are usually available the same day as signing or within 24 to 48 hours. The entire process, from initial consultation to disbursement, generally takes 3 to 6 weeks.

Frequently Asked Questions

How long does the refinancing process take in Quebec?
The complete process generally takes 3 to 6 weeks. Lender approval can be obtained in 3 to 5 business days if the file is complete. The property appraisal takes 1 to 2 weeks. Notarial preparation takes an additional 1 to 2 weeks. Timelines may vary depending on the season and file complexity.
What documents do I need to provide for a refinance?
Typical documents include: proof of income (pay stubs, T1/TP1 tax assessments, employment letters), current mortgage statement, statements for debts being consolidated, proof of home insurance, identification, and a penalty statement from your current lender. Self-employed borrowers must provide additional documents (financial statements, GST/QST returns).
Is a property appraisal always required?
In most cases, yes. The lender requires a professional appraisal to confirm market value and calculate the loan-to-value ratio. Some lenders accept an automated valuation model (AVM) for low loan-to-value files, but this is the exception. The appraisal cost is generally borne by the borrower ($300 to $500).
Why is a notary mandatory in Quebec?
The Civil Code of Quebec (CCQ) requires that any immovable hypothec be constituted by notarial deed and published at the Quebec Land Registry. The notary verifies property titles, ensures the absence of defects, prepares the mortgage deed, and publishes it. This is an important legal protection for both the borrower and the lender.
Can I refinance if I recently changed jobs?
It is possible but may complicate the approval. Most lenders prefer employment stability of at least 3 months (salaried employees) or 2 years (self-employed). If you are on probation or your income has decreased, the lender may require additional conditions. Your AMF-certified broker can guide you toward the most flexible lenders.
What happens if the appraisal comes in lower than expected?
If the appraised value is lower than anticipated, the refinancing amount will be proportionally reduced to comply with the 80% loan-to-value ratio. You can challenge the appraisal by providing recent sale comparables, but the lender is not obligated to revise its decision. Your broker can explore alternative options with other lenders.

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Educational information only. This does not constitute financial advice under the Act Respecting the Distribution of Financial Products and Services (LDPSF). Consult an AMF-certified mortgage broker before making any financial decision.

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