Mortgage rate review
The Bergerons
5-yr variable · renews Aug ’26
F
0.95% above market
Current rate 6.10% vs. today's 5.15% (5-yr variable)
Current rate
6.10%
Today's market
5.15%
Mortgage balance
$395,000
Payment now
$2,551/mo
At market rate
$2,331/mo
Potential saving
$220/mo
If they broke and switched today
penalty: 3-month interestPenalty + fees
$7,524
Monthly saving
$220/mo
Break-even
35 mo
Net over term
—
Costs paid out of pocket
New payment $2,331/mo on $395,000 — $6,024 penalty + ~$1,500 fees paid up front.
Costs financed into the mortgage
New payment $2,376/mo on a new mortgage of $402,524 — saves $175/mo, nothing up front.
Saves about $220/mo; the penalty and fees are earned back in roughly 35 months. Add a renewal date to weigh it against the time left.
Recommended next step
Renewal is coming up (Aug ’26). Shop the market now, before the lender's automatic renewal offer lands.
Payment estimates assume a 25-year amortization with Canadian semi-annual compounding. Penalty ≈$6,024 estimated by the 3-month interest method — Variable terms almost always break at three months' interest. Fees assume ~$1,500 legal/appraisal — often lender-covered on a straight switch. Confirm exact figures with the lender. Illustration only — not a mortgage approval or financial advice.
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