Stay vs switch analysis with amortization scenarios
Estimated current payment: $3,052/mo
Amortization Paths
▾Three ways to structure the mortgage. Different clients care about different things.
Full Comparison
▾| Stay (Current) | Option A | Option B | |
|---|---|---|---|
| Rate | 5.50% | 4.59% | 4.29% |
| APR (True Cost) | 5.50% | 0.12% | 0.12% |
| Term | 1 yr | 5 yr | 3 yr |
| Amortization | 25 yr | 25 yr | 25 yr |
| Monthly Payment | $3,052 | $2,792 | $2,709 |
| Bi-weekly | $1,409 | $1,289 | $1,250 |
| Accelerated Bi-weekly | $1,526 | $1,396 | $1,355 |
| Total Interest (term) | $129,055 | $107,180 | $61,603 |
| Balance at Maturity | $445,938 | $439,633 | $464,068 |
| Principal Paid | $54,062 | $60,367 | $35,932 |
| Monthly Savings | — | $260 saved | $343 saved |
| Interest Saved | — | $21,875 | $17,604 |
Switch Costs
▾Option A: Break-even in 6 months ($260/mo savings)
Option B: Break-even in 5 months ($343/mo savings)
True Savings Over Term
▾Lender Feature Comparison
▾| Feature | TD | Scotia | BMO | First National | MCAP | Manulife | RBC | CIBC |
|---|---|---|---|---|---|---|---|---|
| Collateral Charge | Yes | Yes | No | No | No | Yes | Yes | Yes |
| Penalty Type | Discounted IRD | Discounted IRD | Posted IRD | Standard IRD | Standard IRD | Standard IRD | Posted IRD | Posted IRD |
| Portability | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Prepayment | 20/20 | 20/20 | 20/20 | 20/20 | 20/20 | 20/20 | 20/20 | 20/20 |
| HELOC | Yes (Step) | Yes (Step) | Separate | No | No | Yes (AIO) | Yes (Homeline) | Yes |
| Blend & Extend | Yes | Yes | Yes | No | No | No | Yes | Yes |
| Cashback | Up to 3% | Up to 3% | Up to 7% | Up to 2.5% | Up to 2.5% | No | Up to 7% | Up to 5% |
| Bonafide Sales | No | No | No | No | No | No | No | No |
Numbers are estimates based on Canadian semi-annual compounding. Not financial advice. Actual payments, penalties, and costs may vary by lender.