Calculate how much you can borrow
Start with the estimated current value of your home. Let’s say it’s $300,000. Because you can only borrow a maximum of 80% of your home’s value, multiply $300,000 by 0.8 to get $240,000. Next, subtract the outstanding balance of your mortgage – let’s say it’s $110,000 – so we get $130,000.
Finally, subtract any other outstanding debts secured by your home – say a line of credit worth $10,000 – that leaves $120,000. So in this example, you could borrow an additional $120,000 in a refinancing.
For additional mortgage calculators, please check out:
Dominion Lending Centre Mortgage Calculators
additional mortgage calculators for all your financing needs