Cal11 calculator
Search calculator...

Refinance Mortgage Calculator Ontario

Reviewed by Calculator Editorial Team

Use this refinance mortgage calculator for Ontario to estimate your potential savings and new mortgage payment when considering refinancing your home loan. Simply enter your current mortgage details and the new rate/term you're considering, then calculate to see how much you could save.

How to Use This Calculator

To use the refinance mortgage calculator:

  1. Enter your current mortgage balance (principal amount)
  2. Enter your current interest rate (APR)
  3. Enter your current mortgage term in years
  4. Enter the new interest rate you're considering
  5. Enter the new term you're considering (if different)
  6. Click "Calculate" to see your estimated savings and new payment

This calculator provides estimates only. Actual savings may vary based on closing costs, fees, and other factors not accounted for in this calculation.

How Refinancing Works

Refinancing your mortgage involves replacing your existing loan with a new one, typically to get a lower interest rate or better terms. The process includes:

  1. Applying for a new mortgage
  2. Paying off your old mortgage
  3. Assuming the new mortgage terms

The key benefits of refinancing include:

  • Lower monthly payments
  • Reduced interest costs over the life of the loan
  • Potential tax benefits
  • Cash-out options (if eligible)

Mortgage Payment Formula

Monthly payment = P × (r(1+r)^n) / ((1+r)^n - 1)

Where:

  • P = Principal amount (mortgage balance)
  • r = Monthly interest rate (APR/12/100)
  • n = Number of payments (term in years × 12)

Example Calculation

Let's say you have a $300,000 mortgage with a 5% interest rate and 25-year term. You're considering refinancing to a 4% rate with a 30-year term.

Scenario Rate Term Monthly Payment Total Interest
Current Mortgage 5% 25 years $1,799.44 $287,330
Refinanced 4% 30 years $1,549.49 $224,947

In this example, refinancing saves you $250 per month and $62,383 in total interest over the life of the loan.

Frequently Asked Questions

How much can I save by refinancing?
The savings depend on your current rate, new rate, and term. Use our calculator to estimate your potential savings based on your specific situation.
What are the closing costs for refinancing?
Closing costs typically range from 2% to 5% of your mortgage balance, including appraisal fees, legal fees, and other expenses. These costs are not included in our calculator.
Can I refinance if I have bad credit?
It's more difficult but possible. Specialized lenders may offer refinancing options for borrowers with less-than-perfect credit.
How long does refinancing take?
The process typically takes 30-45 days from application to closing, though some steps may take longer depending on your situation.