Switch check
Compare remaining cost, fees, penalties, break-even month, and total interest. Change any assumption and the full plan recalculates instantly.
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Cumulative payment savings compared with the entered switching costs.
The modeled payment savings recover the entered costs after about 98 months.
| Period | Cumulative payment savings | Switching costs |
|---|---|---|
| 0 mo | $0 | $7,300 |
| 6 mo | $449 | $7,300 |
| 12 mo | $898 | $7,300 |
| 18 mo | $1,347 | $7,300 |
| 24 mo | $1,796 | $7,300 |
| 30 mo | $2,245 | $7,300 |
| 36 mo | $2,694 | $7,300 |
| 42 mo | $3,143 | $7,300 |
| 48 mo | $3,593 | $7,300 |
| 54 mo | $4,042 | $7,300 |
| 60 mo | $4,491 | $7,300 |
Planning estimate only. Lenders use their own qualification, compounding, rounding, insurance, fee, tax, and contract rules.
Calculator guide
A refinance break-even estimate asks how many months of payment savings are required to recover the prepayment penalty and other switching costs. Enter the current balance and remaining amortization, then the replacement rate, amortization, penalty, and fees.
A lower payment is not automatically a saving. Extending amortization can lower the payment while increasing total interest and time in debt.
Break-even divides entered switching costs by estimated monthly payment savings. If the proposed payment is not lower, the calculator reports no payment-based break-even.
Lifetime difference compares the modeled interest paths, but it should be read cautiously when the two amortizations differ or when you expect another sale, renewal, or refinance.
Questions answered
It is the time required for modeled savings to recover the penalty and other costs entered for the switch.
Financing costs preserves cash but adds them to principal, so they also accrue interest. Compare both approaches.
Yes. Penalties, fees, a longer amortization, and a short holding period can outweigh the lower rate.
Rules and tax programs can change. Confirm the current requirements before acting.
Use the estimate well
It can model transparent assumptions, compare scenarios, and expose tradeoffs. It cannot approve a loan, quote a lender, predict markets, interpret your contract, or replace licensed advice.
Run the base case, a higher rate, a lower home value, and a cash-buffer case.
Confirm compounding, prepayment, fees, insurance, dates, and lender rounding.
A feasible payment is not the same as a resilient household budget.
Related field notes
Understand private mortgages, short terms, fees, exit plans, due diligence, and the risks of borrowing outside mainstream bank channels.
PlanningEstimate a Canadian mortgage renewal payment, compare stay-versus-switch costs, and prepare for rate, term, and amortization decisions.
BorrowingEstimate a Canadian mortgage prepayment penalty, understand three-month-interest and IRD methods, and test the full refinance break-even cost.