Mortgage Refinance in London Ontario: Myths That Are Costing Canadians Thousands

If you’ve ever thought about refinancing your mortgage but stopped because you heard “it’s too expensive” or “it resets your whole mortgage clock,” you’re not alone. These myths float around constantly, and they’re holding London families back from saving real money.

Here’s the truth: refinancing is one of the most powerful tools you have to take control of your finances. Done the right way, it can reduce stress, free up cash flow, and help you get ahead years faster. But to use it well, we need to separate myth from math.

Myth #1: “Refinancing is too expensive.” Costs like penalties, legal fees, and appraisals do exist. But costs without context are meaningless. What matters is payback period. If a refinance saves $700–$1,000 a month, a $3,500 penalty can be paid back in a few months — after that, the savings become pure breathing room.

A real example: a London family carrying credit cards at 19% and a line of credit at 12% felt like they were running in place. We consolidated their debt into a new mortgage, lowered their total monthly outflow by $850, and they paid back their penalty in five months. Month six onward was money back in their life.

Myth #2: “Refinancing resets your mortgage clock.” Not true. You choose your amortization. If you’re seven years into a 25‑year term, you can refinance into an 18‑year schedule to keep your progress. Some clients even shorten their amortization to cut lifetime interest while still improving cash flow.

Myth #3: “It’s only worth it if rates drop.” Rates matter, but strategy matters more. Families refinance to consolidate high‑interest debt, fund renovations that improve quality of life or rental income, or access equity for an investment down payment. I worked with a St. Thomas family who refinanced to build a legal basement suite; the new $1,200/month rental income made their whole financial picture more stable.

Bottom line: refinancing is not about hype — it’s about math and goals. If you’re house rich and cash poor, or you’re paying double‑digit interest on other debt, running the numbers could change your year (and your stress level).

Related reading:

- When Did Life Get So Expensive? https://jasmortgages.ca/blogs/b/new-blog-post-1575

- What Would You Do With $1000 a Month? https://jasmortgages.ca/blogs/b/new-blog-post-9309

Ready to see your numbers?

Book a time here: https://jasmortgages.ca/book-appointment or call me at 226-688-6680 / email me at [email protected]