Help! Mortgage Brokers - Ontario

My spouse and I own a house in Toronto and we would like to access some of our equity to pay off debt (130k). Six months ago we renewed our mortgage with our lender without discussing this for fear of not receiving a renewal. So here we are, still need to consolidate this debt somehow, but we are self-employed and gross income last year was only $80k (one income). Current value of our house is approx. 1.2M and balance owed is 425k. Credit is 798 & 803 (TU). Should we pay the penalty and try to refinance? Is this even possible, maybe with a private lender? Any advice would be greatly appreciated.