Remortgage Calculator Ontario

Use this remortgage calculator to determine your potential savings when refinancing your mortgage in Ontario. Compare different interest rates, terms, and fees to make an informed decision about your home financing.

How to Use This Calculator

To use the remortgage calculator, follow these steps:

Enter your current mortgage balance in the "Current Balance" field.
Select your current interest rate from the dropdown menu.
Enter your desired new interest rate in the "New Rate" field.
Select the term of your new mortgage from the dropdown menu.
Enter any additional fees associated with the remortgage in the "Fees" field.
Click the "Calculate" button to see your potential savings.

The calculator will display your estimated monthly payment, total interest paid, and potential savings over the life of the mortgage.

Formula Used

The calculator uses the standard mortgage payment formula to calculate your monthly payment:

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

Where:

P = Principal loan amount
r = Monthly interest rate (annual rate divided by 12)
n = Number of payments (loan term in years multiplied by 12)

The calculator compares the current payment with the new payment to determine your savings.

Worked Example

Let's look at an example to see how the calculator works:

Input	Value
Current Balance	$300,000
Current Rate	5.5%
New Rate	4.25%
Term	25 years
Fees	$2,500

Using these inputs, the calculator would show:

Current monthly payment: $1,643.47
New monthly payment: $1,428.33
Monthly savings: $215.14
Total savings over 25 years: $64,787.50

This example shows that refinancing could save you over $64,000 in interest payments over the life of the mortgage.

Frequently Asked Questions

How often should I consider remortgaging?

You should consider remortgaging when interest rates drop significantly below your current rate, when you want to change your mortgage term, or when you need to access equity in your home. It's generally a good idea to review your mortgage every 1-2 years.

Are there any risks to remortgaging?

Yes, there are some risks including higher monthly payments if rates rise, potential fees, and the possibility of losing equity if you don't repay the mortgage. It's important to carefully compare options and consider your financial situation before remortgaging.

How long does the remortgage process take?

The remortgage process typically takes 4-8 weeks, depending on your lender, the complexity of your situation, and how quickly you can provide required documentation.

Can I remortgage if I have a variable rate mortgage?

Yes, you can remortgage even if you have a variable rate mortgage. In fact, switching to a fixed rate mortgage can provide more stability in your payments.