Calculate Your Break-Even Point, Canada!
Rates Stable: Time to Refinance?
The Bank of Canada held rates steady on July 15, 2026.
This creates a stable environment for Canadians.
It's a clear opportunity to assess potential refinance savings.
What is Mortgage Refinancing?
Refinancing replaces your existing mortgage with a new one.
Often, it's done to get a lower interest rate or change terms.
It can also help you consolidate debt or access home equity.
The Key: Your Break-Even Point
This is when your refinance savings cover all the upfront costs.
After this point, every dollar saved is pure profit for you.
It tells you how long you need to stay in the mortgage to benefit.
Why Refinance in Canada?
Lower your monthly payments with a better interest rate.
Consolidate high-interest debt into your mortgage.
Access your home equity for major expenses or investments.
Refinancing Isn't Free!
There are closing costs, just like your original mortgage.
Expect appraisal fees, legal costs, and potentially a penalty.
These upfront expenses are why calculating break-even is vital.
Let's Crunch Some Numbers!
We'll walk through a simple example to show you how it works.
Imagine a typical Canadian mortgage scenario.
See the power of calculating your break-even point firsthand.
Calculate Your Monthly Savings
First, find the difference in your monthly payments.
Original payment: a certain monthly amount.
New payment: a lower monthly amount. That's a monthly saving!
Find the Break-Even Month
Now, divide your total closing costs by your monthly savings.
Total costs divided by monthly savings equals the break-even time.
Your break-even point is a specific number of months!
CA$585
Monthly saving needed for CA$60,000 in 7 years at 5.5%.
Tip 1: Know Your Goals
Refinance for a clear purpose: lower payments, debt consolidation, or equity access.
Understand how long you plan to stay in your home.
Align your refinance decision with your long-term financial plan.
Tip 2: Shop Around!
Don't settle for the first offer you receive from a lender.
Compare interest rates, terms, and fees from multiple Canadian lenders.
Even a small difference in rate can mean thousands in savings over time.
Tip 3: Factor in ALL Costs
Don't forget all potential costs: appraisal, legal fees, and discharge fees.
Crucially, include any prepayment penalties from your current mortgage.
These 'hidden' costs directly impact your break-even calculation.
Calculate YOUR Savings Now!
Use our free Refinance Savings tool to quickly find your break-even month and unlock potential savings!