Refinance Calculator Canada
Is refinancing worth it? Compare your current mortgage to a new one: monthly savings, how fast the closing costs pay for themselves, and total interest over the same time horizon — with Canadian semi-annual compounding.
Compare Two Mortgages
🏠 Current Loan
💰 New Loan
Should You Refinance Your Mortgage in Canada?
How the break-even works
Refinancing almost always has upfront costs — an appraisal, legal fees, a discharge fee. The break-even point is simply your closing costs divided by your monthly savings: after that many months, you're ahead. If your new rate barely lowers the payment, the break-even can stretch past your remaining years — or never arrive at all. That's why this calculator compares both loans over the same time horizon instead of just showing two payments.
What refinancing costs
Typical one-time refinance costs in Canada include an appraisal, legal fees, and a mortgage discharge fee from your old lender. Exact amounts vary by lender and province, so get a written quote — the default above is just a placeholder you should replace with your own estimate. If you're switching lenders at renewal (not mid-term), many of these costs are lower or waived.
The prepayment penalty trap
Refinancing mid-term means breaking your current mortgage contract. On a fixed-rate mortgage, that usually triggers a prepayment penalty — the greater of 3 months' interest or the interest-rate differential (IRD) — which can run into the thousands. Always ask your lender for your exact penalty and add it to your costs before deciding. A big penalty can erase the entire benefit of a lower rate.
Don't accidentally restart your amortization
A new 25-year amortization will make the monthly payment look temptingly low — but if you had 20 years left, you've just added 5 years of interest. To compare fairly, set the new amortization to match your remaining years. Stretching the term lowers the payment today and raises the total you pay over time.
The numbers above are estimates to help you plan — your lender's official figures are what count. Try a few rate scenarios, check the break-even, and always confirm the penalty before you sign.