FinoGet startedMortgage Refinance Calculator
3 minCheck whether a refinance pays for itself after the penalty and closing costs.
$305/ month
You pay $8,000 up front, so the refinance pays for itself after about 27 months.
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
Does it pay for itself?
Interest over the next 20 years
Equity position
$750,000home value
- New mortgage$450,00060%
- Equity left in the home$300,00040%
Keep going
$305 a month only counts if it stays saved.
A refinance frees up cash flow, and freed cash flow is the easiest kind to spend without noticing. Fino shows you where it actually went.
- Track the $305 against where it ends up each month
- Balance and equity updated as you pass the 27 months break-even
- Both mortgages side by side while the switch is in progress
Free forever, no card required
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.
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 calculatorsSee your full financial picture
Open Fino to connect your accounts and see how this decision fits your cash flow, goals and budget.
- Track cash flow and spending
- Keep goals and budgets in one place
- Ask Fino AI about your own numbers
Common questions
What people ask most about the Mortgage Refinance Calculator.
What does it cost to break a mortgage in Canada?
On a variable-rate mortgage the penalty is typically three months' interest. On a fixed-rate mortgage it is the greater of three months' interest or the interest rate differential, which can run into five figures. Add discharge, legal and appraisal fees, and any portion of a cash-back incentive the lender claws back.
What is the interest rate differential?
The IRD approximates the lender's lost interest for the rest of your term: broadly, the gap between your rate and the current rate for a comparable remaining term, applied to your balance over the months left. Lenders calculate it in materially different ways — some against posted rather than discounted rates — so ask for the actual figure in writing rather than estimating it.
How do I know if a refinance is worth it?
Compare the total cost of breaking against the interest saved over the remaining term, not over a fresh full amortization. The break-even point is the month where cumulative savings overtake the up-front cost. If that point falls after you expect to sell, move or renew, the refinance loses money however attractive the new rate looks.
Is a blend-and-extend an alternative?
Often, yes. Your existing lender blends your current rate with today's rate into a new one over an extended term, usually with no penalty. It rarely beats the best available market rate, but it avoids the breakage cost entirely, so it is worth pricing before you assume a full refinance is the only route.