How much interest can you save if you refinance your mortgage?
This calculator helps you find out! Enter the specifics about your current mortgage, along with new loan amortization, rate and closing costs. We will then determine how much interest refinancing can save you.
Mortgage Refinance Interest Savings (Canadian) Definitions
- Original mortgage balance
- Total amount for your original mortgage.
- Original rate
- Annual percentage rate of your original mortgage.
- Original amortization
- The total number of years for your original mortgage.
- Number of payments made
- The total number of payments you have made on your original mortgage.
- New mortgage balance
- Total amount for your new refinanced mortgage. This amount is equal to your current balance on your original mortgage. All closing costs and prepayment penalties are assumed to be paid at the time of closing. These additional costs are not added to your new mortgage balance.
- New rate
- Annual percentage rate of your new mortgage.
- New amortization
- The total number of years for your new mortgage.
- Closing costs
- Total fees and other costs associated with the new mortgage and paid at the time of closing. This calculator assumes that all closing costs are paid with proceeds other than the new mortgage (closing costs are not added to the total for your new mortgage amount).
- Prepayment penalties
- Some mortgages require you to pay a penalty if the mortgage is paid off early. If you current mortgage has a penalty for prepayment, enter that amount here. Your prepayment penalties are assumed to be an additional cost that is paid at the time of closing.
- Break even point
- The break even point occurs when your interest savings equals your additional closing costs and prepayment penalties. If you have no closing costs or prepayment penalties, there is no break even point.
Many Canadians are paying too much interest. Whether they have higher interest rate mortgages, credit card debts, student loans, car loans, or renovation loans, many Canadians could benefit from refinancing their mortgage.
It's easy to refinance in most cases and most people are able to save themselves thousands of dollars in interest by refinancing, and can often improve their monthly cashflow. You can just imagine how consolidating your high-interest-rate debt into a nice, new, low-rate mortgage could improve your monthly cashflow, take the pressure off your paycheque, and improve your financial position.
At First Foundation we love to help people refinance their mortgage to save money or improve cashflow, or both. You can use the calculator below to run refinance scenarios to see how your payments and overall interest would be after you refinance. For a more detailed and thorough analysis, please talk to one of our friendly Licensed Mortgage Brokers - they will be happy to help.