Refinance Calculator
Thinking about refinancing your mortgage? Use our calculator to see how much you could save each month, how long it takes to break even on the costs, and how much equity you can access.
Configured mortgage rate and refinance rules are required before this estimate can be calculated.
Disclaimer: The estimates and calculations shown above are for illustrative purposes only and should not be relied upon as financial advice. Actual mortgage rates, terms, and eligibility depend on your personal financial situation, credit history, and current market conditions. Please consult a licensed mortgage broker, financial advisor, or your bank to determine your actual affordability and costs before making any purchasing decisions.
Understanding Mortgage Refinancing
Refinancing can be a smart financial move, but it is important to understand the costs, penalties, and when it makes sense for your situation.
When to Refinance
Refinancing replaces your existing mortgage with a new one. Common reasons include:
- Securing a lower interest rate to reduce monthly payments
- Accessing your home equity for renovations, investments, or other needs
- Consolidating high-interest debt into a single lower-rate payment
- Changing your mortgage terms, such as switching from variable to fixed rate
Breaking Your Mortgage
Ending your mortgage early comes with a prepayment penalty. Understanding how it works is critical:
- Fixed-rate mortgages: penalty is the greater of 3 months' interest or the Interest Rate Differential (IRD)
- Variable-rate mortgages: penalty is typically 3 months' interest
- IRD is based on the difference between your rate and the lender's current rate for a comparable term
- Contact your lender for an exact penalty quote before making a decision
Refinance Costs
Beyond the prepayment penalty, there are additional costs to factor into your refinance decision:
- Legal and registration fees for the replacement mortgage
- Property-valuation fees when the lender requires a current appraisal
- Discharge or administration fees charged by the existing lender
- Title-insurance and other closing costs shown in the lender and lawyer quotes
Wondering if refinancing is right for you?
Our team can connect you with trusted mortgage professionals who specialize in refinancing. Get expert advice on your options, penalties, and the best path forward.
Ready to Find Your Dream Home?
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