Mortgage Refinance Calculator
Compare your current Ontario mortgage against a new rate. See your new payment, your monthly saving, and how adding equity changes your total monthly carrying cost — property tax, heating and condo fees included.
How to read your results
The calculator compares your current mortgage against a new rate and shows the payment difference. Three things are worth understanding before you act on the number.
Monthly payment change
Your current payment minus your new one. On a $400,000 balance, moving from 5.50% to 4.00% over 25 years saves $337 a month — calculated with Canadian semi-annual compounding.
Total monthly carrying cost
Principal and interest plus property tax, heating and condo fees. This is the figure lenders use to assess affordability, so it's the one to compare against your budget.
Additional funds
Equity you take out on top of your existing balance. It raises your new payment, and a standard Ontario refinance caps total debt at 80% of appraised value.
This saving is before your prepayment penalty. Breaking a mortgage mid-term costs anywhere from three months' interest to a five-figure Interest Rate Differential. Divide your penalty by the monthly saving above to get your break-even in months — if that lands beyond your remaining term, waiting for renewal is usually cheaper. Our Ontario refinancing guide walks through the penalty math.
Ontario refinance rates today
Fixed refinance rates track the 5-year Government of Canada bond yield, not the Bank of Canada policy rate. Variable refinance rates move with prime. Enter an uninsuredrate above — refinances can't be insured, so the headline rates on comparison sites don't apply to you.
- Policy rate
- 2.25%
- Held July 15, 2026
- Prime rate
- 4.45%
- Variable refi base
- 5-yr GoC yield
- 3.20%
- Drives fixed refi rates
- Max refinance LTV
- 80%
- Standard refinance cap
Rate data as of July 25, 2026. For penalty rules, closing costs and the full process, see our complete Ontario refinancing guide.
Refinance calculator questions
What rate should I enter for my new mortgage?
Use an uninsured rate, not the headline rate on comparison sites. Refinancing makes a mortgage uninsured by definition, because default insurance isn't available when you take equity out. In July 2026 the best insured 5-year fixed in Ontario was near 3.99%, while conventional refinance pricing ran roughly 4.24% to 5.07%. Entering an insured rate will overstate your saving.
Does this calculator include my prepayment penalty?
No. It compares payments only, so the monthly saving it shows is before the cost of breaking your current mortgage. That penalty is usually the deciding factor: variable-rate penalties are three months' interest, while closed fixed-rate penalties are the greater of three months' interest or the Interest Rate Differential, which the Big 6 banks calculate against posted rates. Request a written payout statement from your lender for the binding figure, then divide it by the monthly saving shown here to find your break-even point in months.
What does the Additional Funds field do?
It's your equity takeout — the cash you add to the mortgage balance when refinancing, whether for debt consolidation, renovations or an investment. It increases both your new balance and your new payment. Remember that a standard Ontario refinance caps total mortgage debt at 80% of appraised value, so on a $900,000 home your combined balance can't exceed $720,000.
Why does my payment differ from a US mortgage calculator?
Canadian fixed-rate mortgages compound semi-annually, not monthly, which is set out in the Interest Act. This calculator uses the correct semi-annual formula. A US-style calculator using monthly compounding will overstate your payment by roughly $15 a month on a $400,000 balance — small monthly, but thousands over a full term.
Get your real penalty number
The calculator shows your payment change. Your lender's payout statement shows what it costs to get there — we'll read it with you, run the break-even against 50+ lenders, and tell you honestly if waiting for renewal is the better move.
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