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Refinance calculator

Want to save on your mortgage or get access to some cash? It might be time to consider if refinancing is right for you. Whether you're looking to lower your interest rate or tap into your home equity, with our refinance calculator you can see what makes the most sense for you.

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Mortgage dictionary

The mortgage industry is full of complex and unfamiliar terms, so we created this resources to help translate even the most difficult mortgage terms into plain everyday language.


Down payment

Mortgage Insurance

Mortgage Principal


Prime rate

Payment frequency

Prepayment/Lump Sum Payment

Amortization Period

Mortgage Term

Maturity Date

Mortgage Renewal


Home Equity

Gross Debt Service (GDS) Ratio

Total Debt Service Ratio (TDSR)

Mortgage Pre-Qualification

Mortgage Pre-Approval

Qualifying Rate

Fixed-rate Mortgage

Variable-rate Mortgage

Adjustable-Rate Mortgage (ARM)

Trigger Rate

Land Transfer Tax

Closing costs

Affordable mortgage rates the way you want them

How Our Mortgage Refinance Calculator Works:

What is your current mortgage information?

  • The current value of your home: This is the estimated appraisal value of your home. This amount is used to calculate how much equity you can take out from your home. If your home has grown in value since you got your initial mortgage, then there is more equity to be taken out than the amount that you have contributed through your mortgage payments.
  • Remaining mortgage balance: This is the balance that is left on your mortgage at this point in time. Depending on how many years you have been repaying your mortgage and the interest rate, you will have a wide range of possible values. The more of your mortgage balance you have paid off, the more equity you will be able to access.
  • When did your current mortgage term end: This will help us to calculate how many years or months are left in your current mortgage term. This, in turn, will help us to calculate any breakage fees that will be incurred when you refinance your mortgage.
  • Type of rate: What was the type of rate of your current mortgage, fixed or adjustable/variable?
  • Term length: This is the initial term length of your current mortgage. This is usually a whole number that is five or less.
  • Rate: What mortgage rate did you get for your current mortgage? This is an annual rate, not a monthly rate. 
  • Monthly mortgage payment: How much do you pay on a monthly basis at this point in time. Variable and adjustable rate mortgages may have a changing monthly payment, but for the purposes of this calculator, input your most recent monthly payment.
  • Payment frequency: When signing up for a mortgage, you have the choice between several payment frequencies. This includes monthly or bi-weekly.
  • Rate discount: Your current lender may have given you a rate discount when you received your commitment letter. This number can be found in your current mortgage agreement. This helps us to more accurately measure your penalties on breakage of your current mortgage if your current rate is fixed.
  • Current mortgage lender’s rate? To measure the penalties upon breakage, we also need to know what your current lender’s fixed rate for the remainder of your mortgage term. This is what they will be charging you for early termination.

How much equity do you want to access?

  • How much equity you want to take out: Most customers refinance to take out more equity from their homes. This can be used for renovations, to pay down other debts through consolidation and other life purposes. To calculate your new monthly payment, we need to gauge the size of your new mortgage after you have taken out equity from your home.
  • Max amount you can access: This is a number that we will provide you with to give a rough estimate of the maximum amount you can refinance from your home. 

What is your new mortgage information?

In this section, we prefill the basic information of a mortgage on today’s market. You can adjust whether the mortgage is fixed or adjustable, what term length you are seeking, the amortization period and the payment frequency. We will populate the rate with our current live rates for the given mortgage product that you can qualify for.

Understanding our mortgage refinance calculator results

Our refinance calculator will provide you with three main pieces of information:

  1. Your old monthly payment amount
  2. Your new monthly payment amount with your new mortgage
  3. The amount of breakage fees that you will incur by refinancing your mortgage

To understand if this is a good or worthwhile option, you need to consider your current financial status, your current needs and if it makes sense to incur a breakage fee. Talking to one of our mortgage specialists may help you clarify any questions that you may have to make a more informed decision.

Why you should consult a mortgage refinance calculator

  1. Easy-to-Use Interface: Our user-friendly mortgage refinance calculator is designed to simplify the otherwise complex process of refinancing your mortgage. Gone are the days of navigating cumbersome spreadsheets or trying to figure out complicated equations. With our intuitive interface, getting valuable insights is just a few clicks away.
  2. Comprehensive Data Input: To provide you with accurate and personalized results, our calculator takes into account various essential factors. You'll be prompted to enter details such as your current mortgage balance, interest rate, remaining term, and any outstanding debts you wish to consolidate. Additionally, you can input the new interest rate, loan term, and other relevant information based on your refinancing goals.
  3. Instant Results: Once you've filled in the necessary information, our mortgage refinance calculator performs complex calculations in real-time, delivering instant results. You'll see a breakdown of your new monthly payments, potential savings over the life of the loan, and the overall impact on your finances.
  4. Compare Different Scenarios: Refinancing involves exploring various scenarios to find the one that best suits your financial needs. Our calculator allows you to compare different loan terms, interest rates, and payment options side by side. This empowers you to make informed decisions and choose the refinancing solution that aligns with your short-term and long-term goals.
  5. Insights into Potential Savings: Wondering if refinancing is worth it? Our calculator provides valuable insights into your potential savings. It shows you how much you could save on interest payments over the life of the new loan compared to your current mortgage. You'll have a clear picture of the financial benefits that refinancing can offer.
  6. Consideration of Fees and Costs: Refinancing may involve various fees and costs, such as closing costs, appraisal fees, and administrative charges. Our calculator takes these expenses into account, ensuring you have a comprehensive understanding of the total costs associated with refinancing.
  7. Expert Recommendations: While our mortgage refinance calculator provides valuable data, we understand that each homeowner's situation is unique. That's why we encourage you to reach out to our team of mortgage specialists. They can review your refinancing goals, discuss your financial situation, and offer expert recommendations based on your specific needs.
  8. Secure and Private: We value your privacy and data security. Our mortgage refinance calculator uses advanced encryption and security protocols to protect your personal information throughout the process.
  9. Accessible Anytime, Anywhere: Our online calculator is available 24/7, so you can use it whenever it's convenient for you. Whether you're at home, at work, or on the go, you can access the calculator from any device with an internet connection.

At Pine, we believe in empowering our clients with the tools and information they need to make confident financial decisions. Our mortgage refinance calculator is just one way we demonstrate our commitment to providing exceptional service and support throughout your refinancing journey. Get started now to see how refinancing with Pine can help you achieve your financial goals. Remember, our team of mortgage experts is here to assist you at every step of the way!

What you need to know about mortgage refinancing in Canada

Mortgage refinancing is a financial strategy that involves negotiating a new mortgage to replace your existing one. This process allows homeowners to take advantage of changing market conditions and personal financial situations to potentially save money, access equity, or adjust their payment structure.

The decision to refinance can be driven by various reasons. Some homeowners might be looking to secure a lower interest rate, thus reducing their monthly payments and overall interest costs. Others may wish to adjust the term of their mortgage, either to pay off their mortgage faster or to reduce their monthly payments. Refinancing can also facilitate access to home equity, providing a significant source of funds for renovations, education, or other large expenses. Finally, some may wish to switch from a variable-rate mortgage to a fixed-rate mortgage for the stability of predictable payments.

While refinancing can offer several benefits, it's not a decision to be taken lightly. The process can involve fees and potential penalties, and it's crucial to understand whether the long-term savings outweigh the costs. This comprehensive guide aims to provide you with a solid understanding of mortgage refinancing, helping you make an informed decision that aligns with your financial goals.

Why Consider Refinancing Your Mortgage?

Refinancing your mortgage can bring about numerous benefits, depending on your financial objectives and circumstances. Here are some key reasons homeowners might choose to refinance:

  1. Interest Rate Reduction: Perhaps the most common reason for refinancing is to secure a lower interest rate. Even a slight decrease in your mortgage rate can translate into significant savings over the lifespan of the loan, reducing your monthly payments and making home ownership more affordable.
  2. Changing the Mortgage Term: Refinancing can also allow you to adjust the length of your mortgage term. If you're looking to pay off your mortgage faster and save on interest, you might refinance to a shorter term. Conversely, if you need to reduce your monthly payments to manage your budget better, extending your mortgage term could be a suitable option.
  3. Debt Consolidation: If you're juggling multiple high-interest debts such as credit cards or personal loans, refinancing could enable you to consolidate these debts into your mortgage. Given that mortgages typically have lower interest rates than other forms of debt, this consolidation can lead to lower overall monthly payments, simplifying your financial management.
  4. Access to Home Equity: As you pay down your mortgage and your property's value appreciates, you build home equity - the difference between your property's value and the remaining mortgage balance. Refinancing can allow you to tap into this equity, providing you with a lump sum of cash that can be used for a variety of purposes, such as home improvements, investment opportunities, or significant life events like funding education or a wedding.
  5. Switching from Variable to Fixed Rate: If you initially took out a variable-rate mortgage and the market conditions have changed or you prefer the stability of set payments, refinancing can enable you to switch to a fixed-rate mortgage.

It's important to note that while refinancing can provide numerous benefits, it's not for everyone. There can be costs involved, such as prepayment penalties, legal fees, appraisal fees, and others. Always consider these costs and consult with a mortgage professional to determine if refinancing is the right strategy for your situation.

What you need to know about the refinancing process

Understanding the process of refinancing can help you navigate this financial journey with ease and confidence. Here's a step-by-step overview of the mortgage refinancing process in Canada:

  1. Assess Your Financial Situation: Start by evaluating your current financial position, including your income, expenses, debts, and credit score. Determine your reasons for refinancing and the goals you hope to achieve.
  2. Understand Your Home Equity: Home equity plays a significant role in refinancing. It's the difference between the current market value of your home and the remaining mortgage balance. Higher equity often means better-refinancing terms.
  3. Research Current Mortgage Rates: Check the current mortgage rates offered by various lenders, including your existing lender. These rates will play a crucial role in determining whether refinancing will be beneficial for you.
  4. Calculate the Cost of Refinancing: Understand that refinancing comes with certain costs, such as prepayment penalties, legal fees, title fees, and appraisal fees. Use a mortgage refinance calculator, like the one provided by Pine, to help you crunch the numbers and see if the potential savings outweigh these costs.
  5. Apply for Refinancing: If you decide to proceed, you'll submit an application to the lender. The application process is similar to that of the original mortgage and includes income verification, credit checks, and property appraisal.
  6. Review the Loan Estimate: Upon receiving your application, the lender will provide you with a loan estimate outlining the terms of the loan, the interest rate, and the closing costs. Review this document carefully.
  7. Close on the Loan: If you agree to the terms, the next step is closing. You’ll pay any necessary closing costs, and the new mortgage will replace your old one.

Remember, refinancing is a strategic financial move and should not be rushed. Be sure to consult with a mortgage professional to ensure it aligns with your long-term financial goals.

6 Factors to Consider Before Refinancing

Refinancing your mortgage is a significant financial decision that requires careful consideration. Here are some important factors to contemplate before you decide to refinance:

  1. Interest Rate Differential: One of the main reasons to refinance is to obtain a lower interest rate, but how much lower should the new rate be to make refinancing worthwhile? While this can vary based on individual circumstances and market conditions, a general rule of thumb is that the new rate should be at least 0.5-1% lower than your existing rate.
  2. Prepayment Penalties and Fees: It's crucial to be aware that breaking your existing mortgage contract can result in prepayment penalties. These fees can be substantial, especially if you're breaking a fixed-rate mortgage in its early years. Also, additional costs such as legal fees, title fees, and appraisal fees are involved in refinancing. You'll want to ensure that the potential long-term savings outweigh these upfront costs.
  3. Long-term Financial Goals: Consider your long-term financial goals and how refinancing aligns with them. If you're aiming to pay off your mortgage faster and save on interest, a refinance to a shorter term may be ideal. If you're looking for lower monthly payments or need to access your home equity for large expenses, refinancing could be a good move.
  4. Current Credit Score: Lenders use your credit score to determine your creditworthiness. A higher score can secure a more favourable interest rate. Therefore, before you apply for refinancing, check your credit score and take any necessary steps to improve it.
  5. Mortgage Balance: The amount remaining on your mortgage can impact whether refinancing is a good idea. If you're close to paying off your mortgage, the costs of refinancing may outweigh the benefits.
  6. Economic Outlook: Keep an eye on market conditions and future interest rate predictions. If interest rates are expected to fall in the future, it might be worth waiting before you refinance.

Remember, everyone's situation is unique. What works for one homeowner may not work for another.

Do you incur prepayment penalties in mortgage refinancing?

When considering refinancing, one critical factor to consider is the potential for prepayment penalties. These penalties are charged by lenders when a borrower pays off their mortgage before the term ends, which includes refinancing before the term is over.

In Canada, the prepayment penalty can vary based on whether you have a fixed-rate or variable-rate mortgage:

  1. Fixed-Rate Mortgages: For fixed-rate mortgages, the prepayment penalty is typically the greater of three months' interest or the interest rate differential (IRD). The IRD is the difference between your existing mortgage rate and the current rate the lender can charge for a mortgage that has a term remaining similar to your remaining term. The IRD is then multiplied by the outstanding mortgage balance and the time remaining on the mortgage term.
  2. Variable-Rate Mortgages: For variable-rate mortgages, the prepayment penalty is generally equal to three months' interest.

Keep in mind that each lender can calculate these penalties slightly differently. For example, some may use the current mortgage rates in their calculation, while others use the discount you received when you initially took the mortgage. It's important to consult your original mortgage agreement or speak with your lender to understand exactly how your prepayment penalty would be calculated.

Prepayment penalties can be substantial, especially if you're early in your mortgage term and the interest rates have fallen since you took your mortgage. It's crucial to factor this cost into your decision to refinance. A mortgage refinance calculator can help you understand whether the potential savings from refinancing outweigh the cost of the prepayment penalty.

While prepayment penalties can seem like a deterrent to refinancing, don't forget they are only one piece of the puzzle. In some cases, the long-term savings from refinancing could still be worthwhile, despite the upfront penalty.

Mortgage Statement

Calculation results and mortgage rates shown are approximations and dependent on the data you have provided. They are for illustration purposes only and are not intended to provide financial advice. Pine does not make any representations or warranties with respect to the calculation results. Rates quoted are not considered as rate guarantees. Pine may offer different rates when you apply for your mortgage if any of the provided details differ, if rates have changed. In some instances, rates may also vary based on your credit or payment history. Additional terms and conditions may apply.

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