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Top Mistakes Edmonton Homeowners Make When Refinancing and How to Avoid Them
July 8, 2025 | Posted by: Jeff Chin
Refinancing your home in Edmonton can be a powerful way to lower your monthly mortgage payments, consolidate debt, or access home equity for renovations or investments. However, many homeowners make costly mistakes during the refinancing process that reduce their savings or increase financial risk.
In this article, we break down the most common refinancing mistakes Edmonton homeowners make and how to avoid them so you can make informed decisions that support your long-term financial goals.
Not Shopping Around for the Best Refinance Rate in Edmonton
One of the biggest mistakes is accepting the first refinance offer from your current lender. Edmonton’s mortgage market is competitive, and there are often better rates or terms available from other lenders or mortgage brokers.
What you should do:
Work with an experienced Edmonton mortgage broker like Steven Boodoo. He can compare offers from multiple lenders and secure the best possible rate based on your financial profile and home equity.
Ignoring the Total Cost of Refinancing
Some homeowners focus only on the interest rate and ignore the full cost of refinancing, which can include legal fees, appraisal costs, discharge penalties, and administrative fees.
What you should do:
Calculate your break-even point. This is the time it takes to recover the refinancing costs through your monthly savings. If you plan to sell your Edmonton home before reaching this point, refinancing might not be worth it.
Refinancing Without a Clear Goal
Refinancing just because rates are lower is not always the best approach. Without a clear goal, you risk ending up with a mortgage that does not align with your financial priorities.
What you should do:
Identify your objective. Are you trying to lower monthly payments, consolidate debt, access equity, or change your mortgage term? A clear purpose helps you and your mortgage advisor choose the right strategy.
Overlooking Penalties and Mortgage Terms
Refinancing a fixed-rate mortgage before the end of its term can lead to prepayment penalties. Many homeowners are caught off guard by fees they did not expect.
What you should do:
Have a mortgage professional like Steven review your current mortgage contract. Understanding the terms and potential penalties ahead of time can help you make a smarter decision.
Not Factoring in Home Equity Changes
Refinancing options depend on the amount of equity you have in your Edmonton home. If home values have shifted, it may affect how much you can borrow or whether you qualify at all.
What you should do:
Get a current estimate of your property value. If you are unsure, a professional appraisal or guidance from a local mortgage expert can provide clarity.
Applying Without Improving Your Credit Score
Your credit score significantly affects the mortgage rate and terms you receive. Applying with poor credit can lead to higher rates or declined applications.
What you should do:
Before applying to refinance, review your credit report, pay down debts, and avoid taking on new loans. Even small improvements in your score can lead to better refinancing options.
Timing Your Rate Lock Poorly
Some homeowners delay locking in a refinance rate in hopes that it will drop further. If rates rise instead, they miss the opportunity to save.
What you should do:
If a rate meets your needs and aligns with your goals, consider locking it in with a rate hold. This protects you while your application is processed.
Not Understanding Local Market Differences
Mortgage conditions and home values can vary significantly even within the Edmonton area. For example, refinancing in Edmonton may present different opportunities compared to refinancing in St. Albert.
If you are curious about how these differences affect home financing decisions, check out our guide on Buying in Edmonton vs. St. Albert: Mortgage Differences That Matter.
Final Thoughts
Refinancing your mortgage can be a great financial tool, but only if done correctly. By avoiding these common mistakes, you can increase your chances of saving money and reaching your financial goals with confidence.
Talk to Steven Boodoo About Refinancing Your Edmonton Home
Whether you are looking to reduce your payments, consolidate high-interest debt, or access your equity, Steven Boodoo can help guide you through the refinancing process with personalized advice and expert insight.
Contact Steven Boodoo today to schedule a free consultation and explore your options for refinancing in Edmonton.