Refinancing a mortgage allows you to access equity (up to 80% of the current value of your home) by paying off the original mortgage you can access additional equity available to pay off debts that are often at higher interest rates or monthly payments and free up your budget to increase cash flow. You can also access equity for investment reasons, perhaps the down payment to purchase an investment rental property or invest into RRSPs. Major renovations and home improvements can be costly and borrowing from the equity in your home can be less expensive than borrowing on unsecured lines of credit or credit cards.