How to Refinance Your Mortgage to Boost Monthly Cash Flow (Even with Debt!)

by Jasmine Srnicek, The Cash Flow Broker – London, Ontario

If you’re feeling squeezed by high interest debt, rising bills, and the cost of raising a family—you’re not alone.

Many Canadians are caught in a cash flow crunch, and I see it every day in my work as a mortgage broker here in London, Ontario. The good news? If you’re a homeowner, you might be sitting on one of the most powerful tools to improve your monthly finances: refinancing your mortgage.

Let’s break it down—clearly and simply—so you can decide if refinancing might be the right move for your family.

💸 The Debt Reality in Canada

The numbers tell a story that many families are living firsthand:
- Canadians now owe $1.74 for every $1 of disposable income (Q1 2025)
- The average non-mortgage debt is $21,900, and for adults aged 46–55, it’s over $34,500
- We’re spending nearly 15% of our take-home income just servicing debt
- Total household debt hit $3.07 trillion in early 2025

This isn’t just about numbers—it’s about peace of mind, family goals, and mental space. That’s why more homeowners are turning to mortgage refinancing as a strategy to regain control.

If you’re searching for the best mortgage broker in London, Ontario to guide you through it, you’re in the right place.

🔍 So, What Is Refinancing?

Refinancing means replacing your existing mortgage with a new one—usually at a lower interest rate or for a larger amount—to achieve a financial goal. Common reasons to refinance include:
- Accessing home equity to consolidate high-interest debt
- Lowering your monthly payment
- Shortening or extending your amortization
- Switching lenders for better terms or service

It’s essentially a reset button—but one backed by strategy.

👩‍👧‍👦 Client Story: A Family Who Needed Breathing Room

Meet Erin and Dave, a couple in their early 40s with two kids and a home in London’s Westmount area. Like many families, they had accumulated debt over the years—credit cards, a car loan, and a line of credit—totalling about $42,000 outside their mortgage.

Even though they were making all their payments, the monthly stress was real. Dave said it best: “We were doing okay on paper, but it never felt like we could exhale.”

They reached out to me to see if refinancing made sense. After reviewing their mortgage, equity, and debt load, we:
- Rolled the $42,000 of debt into their mortgage
- Extended their amortization by 5 years
- Lowered their monthly payments by over $700/month

Now, they’re not just surviving—they’re saving for the future and sleeping better at night.

🔍 Is Refinancing Right for You?

Here are some signs that a refinance might help:
✅ You have more than $20,000 in credit card or personal loan debt
✅ Your current mortgage rate is above 5%
✅ You want to lower your monthly payments
✅ You’re feeling the financial squeeze and need relief
✅ You’re planning a major life shift—new baby, career change, retirement, or divorce

💡 What About the Penalties?

Yes, some mortgages have break fees—but don’t let that stop you from exploring your options. I’ll calculate whether the long-term savings outweigh any penalties, and we’ll go over every number together.

In Erin and Dave’s case, their penalty was just under $3,000—but their monthly savings of $700 meant they recouped that in just 4 months.

📊 Real Numbers, Real Impact

Here’s a simplified example:

Before Refinance:
- Mortgage: $450,000 @ 5.24%
- Monthly Payment: $2,487
- Debt Rolled In: $0

After Refinance:
- Mortgage: $485,000 @ 3.95%
- Monthly Payment: $2,295
- Debt Rolled In: $35,000
- Total Monthly Savings: $192/month (plus debt paid off!)

You’re turning chaotic interest rates (19%+ credit cards) into stable, manageable mortgage payments.

🙋‍♀️ Let’s Talk — No Pressure, Just Options

There’s no “one size fits all” when it comes to refinancing—but I’m here to help you understand the possibilities, do the math, and build a plan that fits your life.

Whether you’re new to refinancing or searching for the best mortgage broker London Ontario has to offer, I’m here to support your goals.

📲 Book a Free Call: https://jasmortgages.ca
📩 [email protected]
🗺 Serving London, Ontario and families across the province

📣 Want More Breathing Room in Your Budget?

Whether you’re trying to get out of debt, plan for your kids’ future, or simply stop the month-to-month stress—I’d love to help you refinance with confidence.

Because you deserve more than just a mortgage. You deserve a cash flow plan that works for your life.