Glossary term

Mortgage refinancing

Changing or replacing a mortgage borrowing arrangement, often by increasing the amount, changing the amortization, or replacing the mortgage before term-end.

Plain meaning

What mortgage refinancing means

Refinancing restructures the borrowing arrangement rather than simply continuing an unchanged mortgage at renewal.

How OpenBook uses it

Additional or restructured borrowing

OpenBook uses refinancing to distinguish additional or restructured borrowing from an unchanged renewal or straight switch.

Common boundary

Qualification and transaction costs still apply

Refinancing generally requires current qualification. Before term-end, it may also produce a prepayment charge and discharge, appraisal, legal, or registration costs.