Mortgage rate review
The Okafors
5-yr fixed · renews Dec ’26
D
0.85% above market
Current rate 5.79% vs. today's 4.94% (5-yr fixed)
Current rate
5.79%
Today's market
4.94%
Mortgage balance
$550,000
Payment now
$3,451/mo
At market rate
$3,180/mo
Potential saving
$271/mo
If they broke and switched today
penalty: 3-month interestPenalty + fees
$9,461
Monthly saving
$271/mo
Break-even
35 mo
Net over term
—
Costs paid out of pocket
New payment $3,180/mo on $550,000 — $7,961 penalty + ~$1,500 fees paid up front.
Costs financed into the mortgage
New payment $3,235/mo on a new mortgage of $559,461 — saves $216/mo, nothing up front.
Saves about $271/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
About 0.85% above today's market — switching could save roughly $271/mo. Worth weighing any prepayment penalty against the savings.
Payment estimates assume a 25-year amortization with Canadian semi-annual compounding. Penalty ≈$7,961 estimated by the 3-month interest method — No renewal date on file — showing the three-month-interest floor. 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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