📋Current Mortgage
Used for both current and new monthly payments — not the contract term
💰Penalty Estimate
Current comparable rate for your remaining term. IRD applies when this is lower than your contract rate.
Legal fees, appraisal, etc.
✨New Mortgage
Contract length you would lock in. Monthly payments still use remaining amortization, and savings are measured over your remaining current term.
Current Best Rates
Rates as of March 2026. Check current rates for accurate calculations.
✅ Refinancing Makes Sense
You'll save $3,321 over your remaining 3-year term after penalty and closing costs
Monthly Savings
+$301
Break-Even
25 months
Total Savings (3 yr)
$3,321
Cost Breakdown
Interest Comparison
Mortgage Negotiation Guide
Negotiating your rate could save thousands, depending on your mortgage.
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Try these other free Canadian mortgage tools to plan your home purchase.
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Frequently Asked Questions
When does it make sense to refinance my mortgage?
Refinancing makes sense when you can secure a rate at least 0.5-1% lower than your current rate, when you need to access home equity for renovations or investments, when you want to consolidate high-interest debt, or when your financial situation has improved and you qualify for better terms. Use our calculator to see your break-even point and total savings.
What are the costs to refinance a mortgage?
Refinancing costs typically include: appraisal fee ($300-500), legal fees ($800-1,500), title insurance ($200-500), discharge fee from current lender ($200-400), and potentially a mortgage registration fee. Total costs usually range from $1,500 to $3,000. Some lenders offer to cover these costs as an incentive to switch.
How long does it take to break even on refinancing?
Break-even point depends on your penalty, new rate, and mortgage balance. Typically 12-36 months. For example, if refinancing costs $3,000 in penalties and fees, and you save $200/month on payments, your break-even is 15 months. After that, every month is pure savings. Our calculator shows your exact break-even timeline.
Can I refinance with bad credit?
Yes, but options are more limited. Alternative and B-lenders work with lower credit scores (550-650) but charge higher rates (typically 1-3% above prime). If your credit has worsened since your original mortgage, you may face challenges. Consider improving your credit score first or working with a mortgage broker who specializes in alternative lending.
Should I refinance or get a HELOC?
Refinance when you want a lower rate on your entire mortgage balance or need a large lump sum. A HELOC (Home Equity Line of Credit) is better for ongoing access to funds or smaller amounts. HELOCs have variable rates and interest-only payments, while refinances give you a fixed rate and structured payments. Many homeowners do a 'refinance plus HELOC' combination.