If you bought your Ottawa home in 2023 or 2024 when rates were high, you might be wondering if now is the time to refinance. The mortgage market has changed significantly since late 2025, and many Ottawa homeowners are exploring their refinancing options.
Current Refinance Rates in Ottawa
As of early 2026, mortgage refinance rates in Ottawa are sitting around 3.84% to 4.19% for five-year fixed terms. This represents a meaningful drop from the rates many homeowners locked in during 2023 and 2024, when rates were above 6% or even 7%.
Variable rates are currently around 3.45% to 3.85%. These rates have stabilized after the Bank of Canada’s recent adjustments, though they remain sensitive to economic changes.
When Does Refinancing Make Sense?
Most mortgage advisors use a general rule: refinancing makes sense when you can lower your rate by at least 0.5% to 1%. However, the actual decision depends on your specific situation.
Calculate Your Break-Even Point
Your break-even point tells you how long it takes for monthly savings to cover your refinancing costs. Here’s the simple math:
Total Closing Costs ÷ Monthly Savings = Months to Break Even
For example, if refinancing costs you $8,000 and saves you $400 per month, you break even in 20 months. If you plan to stay in your Ottawa home longer than that, refinancing likely makes sense.
Good Candidates for Refinancing in 2026
You should consider refinancing your house in Ottawa if you:
- Locked in a rate above 5.5% in recent years
- Have improved your credit score since buying
- Want to switch from an adjustable-rate to a fixed-rate mortgage
- Have built enough equity to eliminate mortgage insurance
- Need to consolidate high-interest debt
- Want to access equity for home renovations
Refinancing Costs in Ottawa
Refinancing is not free. You should expect to pay between 2% to 6% of your loan amount in closing costs. These costs typically include:
- Appraisal fees
- Legal fees
- Application and processing fees
- Title search and insurance
- Land transfer tax (in some cases)
- Mortgage discharge fees from your current lender
On a $500,000 mortgage, closing costs could range from $10,000 to $30,000. The exact amount varies based on your lender and situation.
Refinancing to Remove Mortgage Insurance
If your home value has increased since you bought it, you might now have 20% equity. This means you could refinance and eliminate your mortgage insurance premiums.
Mortgage insurance typically costs between 0.6% and 4.5% of your original loan amount. Removing this cost through refinancing can save you significant money each month, even if your interest rate stays similar.
Working with a Mortgage Broker for Refinancing
Banks will only offer you their own products when you refinance. A mortgage advisor in Ottawa can compare rates from multiple lenders to find you the best deal.
Mortgage brokers typically do not charge you fees. They get paid by the lender when your refinance closes. This means you get access to more options at no extra cost.
Brokers can also help with more complex situations, such as refinancing if you are self-employed or have foreign income.
What to Watch in Ottawa’s Market
Ottawa’s housing market has cooled from its peak, but inventory remains relatively tight in many neighborhoods. Home prices have stabilized, which affects your refinancing options.
If your home value has dropped since you bought it, you might have less equity than expected. This can make refinancing more difficult or expensive, especially if you now have less than 20% equity.
Should You Wait for Lower Rates?
Trying to time the market perfectly is difficult. Mortgage rates in 2026 are significantly better than 2023-2024, but they are not at the historic lows seen in 2020-2021.
If waiting for another 0.25% drop costs you six months of higher interest payments, you might lose more money than you save. Focus on whether refinancing makes sense now based on your situation, not on predicting future rate movements.
Getting Started with Refinancing
If you think refinancing your Ottawa home makes sense, start by gathering information. Check your current mortgage documents, review your credit report, and estimate your home’s current value.
Then use mortgage tools to calculate potential savings. If the numbers look good, contact a mortgage advisor to discuss your specific situation and explore your options.