Hi,
I have read through all the posts regarding your mortgage. Scotiabank offers a Scotia Total Equity Plan that will assist with what you are looking to accomplish. If your current mortgage is $209K and your house value is $265K, then your loan to value is 78% allowing you to turn your mortgage into a conventional mortgage and start acruing equity to use towards paying off debt at a lower rate.
Scotiabank's current 5 year rate is 3.29%, below is a link to the Scotiabank Total Equity Plan.
http://www.scotiabank.com/ca/en/0,,28,00.html
Please let me know if you have any additional questions.