Mortgage rate review
Harjit Singh
5-yr variable · renews May ’28
C
0.50% above market
Current rate 5.65% vs. today's 5.15% (5-yr variable)
Current rate
5.65%
Today's market
5.15%
Mortgage balance
$425,000
Payment now
$2,631/mo
At market rate
$2,508/mo
Potential saving
$123/mo
If they broke and switched today
penalty: 3-month interestPenalty + fees
$7,503
Monthly saving
$123/mo
Break-even
61 mo
Net over term
—
Costs paid out of pocket
New payment $2,508/mo on $425,000 — $6,003 penalty + ~$1,500 fees paid up front.
Costs financed into the mortgage
New payment $2,553/mo on a new mortgage of $432,503 — saves $79/mo, nothing up front.
Saves about $123/mo; the penalty and fees are earned back in roughly 61 months. Add a renewal date to weigh it against the time left.
Recommended next step
Slightly above market — worth a review at renewal.
Payment estimates assume a 25-year amortization with Canadian semi-annual compounding. Penalty ≈$6,003 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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