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Fill in the required boxes and click CALCULATE for results
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Would you save money by changing rates?
Fill in the boxes and click CALCULATE to find out. Use this calulator to compare
discounted mortgage rate offers, the costs or benefits of assuming existing
mortgage financing, or calculating the Interest Rate Differential and payout
penalty on your mortgage.
Click on  for help on an entry.
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A
$ 100,000 mortgage at existing rates of
4.75 % with a
60 month term and
300 month amortization results in monthly payments of
$ 567 and a balance at term maturity of
$ 88,156.
Your cost to break this mortgage contract is $ 5,219 (Greater of IRD and 3 month penalty) . The
benefit you will receive by switching to the best available rate of 2.75 % is
$ 5,219. As such your net benefit after paying penalties is $ 0.
(A mortgage rate of 2.75 % would result in a payment that is
$ 107 lower each month and a balance at term maturity that is $ 1,657 lower
. The present value of these differences is $ 5,219 .)
You would be ON EQUAL GROUND after refinancing.
NOTE: You should confirm the actual penalty amount with
your existing lender. Each lender may calculate the penalty differently and it will likely vary slightly from our calculations.
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Existing
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Posted IRD
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New Mortgage
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Interest Rate
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4.75 %
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2.75 %
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2.75 %
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Monthly Payment
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$ 567
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$ 461
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$ 461
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Balance at TERM
(based on amortization)
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$ 88,156
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$ 86,499
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$ 86,499
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PRESENT VALUES
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(2.75 % discount rate)
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Difference in Payments
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$ 3,692
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$ 3,692
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Difference in Balance
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$ 1,527
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$ 1,527
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PENALTY
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( $ 5,219 )
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( $ 5,219 )
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PRESENT VALUE
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$ 0
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$ 0
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$ Back in Pocket
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$ 288
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$ 288
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(sum of all payments and balance differences, not accounting for time)
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If you Keep equal
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payments of $ 567 :
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Balance at TERM
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$ 82,491
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PV Difference in Balance
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(2.75 % discount rate)
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$ 5,219
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PENALTY
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( $ 5,219 )
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ALT. PRESENT VALUE
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$ 0
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Canadian Calculation - Compounded Semi-Annually
NOTE: Payments on a new mortgage beyond the remaining term of 36 months are not used in determining present values.
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Figures are rounded to nearest dollar.
The above information is deemed reliable, but is not guaranteed.
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Amortization Calculator
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Amortization Schedule
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Early Renewal Calculator
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