The Mindful Mortgage
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Should you break your mortgage for a lower rate?

Rates have moved, and you may be sitting on a better deal — but breaking early means a penalty. It comes down to one honest question: would the interest you'd save beat the cost to leave? Let's find out. No email needed to see your numbers.

What's left on your mortgage?
Your current balance — a close estimate is fine.
$400,000
Your rate now, and the rate you could get.
If you're not sure of today's rate, use your best guess — we'll confirm it for you.
How much time is left?
Two different things: your term is when your rate is locked until renewal; your amortization is how long until the mortgage is fully paid off.
3 years
22 years
What kind of mortgage is it?
This decides how your penalty is calculated — and it's a big difference.
Who's your current lender?
Big banks calculate the IRD against inflated posted rates, which can multiply the penalty.
Your estimate
 
$0
Penalty to break (estimated)$0
Estimated switching costs$0
Interest you'd save over your term$0
Net benefit of breaking$0
Or lower your payment by$0/mo
You'd break even in about0 months

Let's pressure-test this with your real numbers.

This is an estimate — your exact penalty comes from your lender, and there may be a smarter route (like a blend-and-extend that skips the penalty entirely). A free 15-minute call will tell you the real answer.

Book my free strategy call Start my application

Or have your breakdown emailed to you:

Done — your breakdown is on its way. Talk soon.

Your details stay private — I'll never sell your info or spam you.

All figures are estimates for illustration only, using standard Canadian semi-annual compounding. The penalty for a variable mortgage is estimated as three months' interest; for a fixed mortgage it's the greater of three months' interest or the interest rate differential (IRD), with the IRD compared to your new rate and, for big banks, adjusted to reflect their posted-rate method. Interest savings assume you keep your current payment so the comparison is like-for-like; switching costs are a placeholder estimate. Your actual penalty must be confirmed by your lender in writing. This is not financial advice.

Best, Leigh — The Mindful Mortgage