To refinance a home, a homeowner applies for a new mortgage.

During this process, the home undergoes an appraisal to determine value. The lender typically has a title report conducted. In summary, this is a process which pays off an existing mortgage and sets up a new primary mortgage.

So, why refinance? Many people take advantage of low interest rates by applying for mortgage refinancing. For some owners, it's about keeping on track with financial goals and being able to save money in unnecessary interest payments.

By using equity, you can turn your home into a source of extra financing. The following are some reasons why people refinance:

Debt consolidation.

To purchase an investment property using existing equity.

To top RRSP contributions.

To lower existing mortgage interest rates.

To pay for college or university tuition.