Mortgage Refinance Calculator

3 min

Check whether a refinance pays for itself after the penalty and closing costs.

CanadaNo account required

Your payment would drop by

$305/ month

You pay $8,000 up front, so the refinance pays for itself after about 27 months.

Within the refinance limit

Your new mortgage is 60% of the home's value, under the 80% refinance cap.

You could still access up to $150,000 of equity today.

Monthly payment

Payment today$3,142
Payment after refinancing$2,837

Monthly saving$305

Does it pay for itself?

Prepayment penalty$6,500

Legal, appraisal and discharge$1,500

Cash needed today$8,000

Break-even27 months

Interest over the next 20 years

Interest over the next 20 years now$304,082
Interest over the next 20 years refinanced$230,838

Difference$73,245

Equity position

$750,000home value

New mortgage$450,00060%
Equity left in the home$300,00040%

Estimates are based on the information and assumptions you provide and are for educational purposes only. This is not financial, tax, legal or lending advice.

What this means

Refinancing in Canada is not eligible for mortgage default insurance, so lenders cap the new mortgage at 80% of the home's value.
You spend $8,000 up front and save $305 a month, so you break even after about 27 months.
Keeping the amortization at or below what you have left avoids resetting the clock on your mortgage.

Or pay the mortgage down faster instead

Assumptions & methodology

The penalty shown is your estimate. Fixed-rate lenders usually charge the greater of three months' interest and an interest rate differential.
Legal, appraisal, discharge and title costs vary by lender and province.
Your lender will use its own appraisal of the property, which may differ from the value you entered.
Rates are assumed to hold for the full amortization, which no Canadian term actually guarantees.

Related calculators

View all calculators

Your inputs