What is the maximum amount that can be borrowed for refinancing in Canada?

In Canada, when homeowners seek to refinance their mortgage, they can typically borrow up to a maximum of 80% of the appraised value of their property. This limit is primarily set to ensure that lenders mitigate risk while also providing homeowners the opportunity to access a portion of their home equity for various financial needs, such as renovations, debt consolidation, or other expenses.

Borrowing up to 80% of the property value allows for a significant amount of equity to be tapped into while ensuring that a buffer remains to protect lenders from fluctuations in property values. This 80% limit is standard for conventional financing, which means it generally applies to loans that are not insured by a mortgage insurance provider.

Additionally, the other amounts, such as 70%, 75%, or 85% of the property value, do not reflect the typical guidelines established for refinancing, with 85% being outside the typical range unless specified under certain conditions, often requiring additional risk management measures.