NestAbode · Buyer tools

Is it worth breaking your term?

A lower rate can be undone by the penalty to leave your current term. See the estimated penalty, your new payment, and how long it takes to recover the cost — before renewal arrives.

Your current mortgage

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$

All amounts in Canadian dollars (CAD).

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%
yrs
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Your lender's current rate for a term matching the time you have left. Used to estimate the interest rate differential.

$
Estimated monthly saving
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a month at the new rate
Cost to break your term
Three months' interest
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Interest rate differential (est.)
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Prepayment penalty
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Legal / discharge costs
+ —
Total cost to switch
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Your payment
Current payment
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New payment
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Monthly saving
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Does it pay off?
Break-even (months to recover)
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Net over your remaining — months
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Rates & rules as of —

Your lender's payout statement is the only authoritative penalty.

Speak to a licensed mortgage professional

This is an estimate, not advice. The prepayment penalty to break a closed fixed term is typically the greater of three months' interest and the interest rate differential (IRD) — but lenders calculate the IRD differently (posted vs. contract rates, rounding, the comparison-rate term), so only your lender's payout statement is authoritative. The comparison rate above is your own estimate. Payments compound semi-annually under the Interest Act and are shown over the remaining amortization. This estimate excludes any new default-insurance premium, appraisal beyond the cost you enter, and tax effects. This tool collects no personal information. Confirm every figure with a licensed mortgage professional before you rely on it.