Switch Primary Recommendation

Switch RBC mortgage at 456 King Street West Unit 1804 from 6.2% to 4.05%

Uninsurable switch to a new lender (keeps the 28-year amortization, or reset it up to 30 — uninsurable, so no insurer caps it). Pay 3-month interest penalty (~$4,805) but get better rates. Fixed: 4.24% (save $5,947/yr) | Variable: 4.05% (save $6,526/yr).

Savings shown fixed to variable, on the 5-year term. Interest saved, not payment.

• Penalty estimate ($4,805) based on 3-month interest - get exact quote from lender
• New lender qualification required
• Amortization must remain the same (cannot extend) for switch rates
• Must maintain LTV ≤ 80% for switch rates

Refinance TD at 123 Bay Street Unit 2501 from 5.49% to 3.8% + Toyota Financial, TD Visa Infinite

Upfront: $4,539    Current: 5.49%    Fixed: 4.44%    Variable: 3.80%    Term: 5yr    Amortization: 25 or 30yr (both shown)    New loan: $229,539

25-year amortization (current amortization bucket)

30-year amortization

Costs: Penalty $2,539 · Legal & closing $2,000

• Highest savings: $5,807/year
• Includes debt consolidation (eliminates high-interest credit card)
• Break-even in 10 months

Switch RBC mortgage at 456 King Street West Unit 1804 from 6.2% to 4.05%

Upfront: $5,305    Wealth break-even: 10 months    Current: 6.20%    Fixed: 4.24%    Variable: 4.05%    Term: 5yr (lowest rate)    Amortization: 28 or 30yr (both shown)    New loan: $310,000    Rental property

28-year amortization

30-year amortization

Costs: Penalty $4,805 · Legal & closing $500

• Uninsurable switch (uninsurable rates)
• Save $6,526/year
• Break-even in 10 months

Refinance RBC at 456 King Street West Unit 1804 from 6.2% to 4.20%

Upfront: $6,805    Wealth break-even: 21 months    Current: 6.20%    Fixed: 4.79%    Variable: 4.20%    Term: 3yr (lowest rate)    Amortization: 25 or 30yr (both shown)    New loan: $316,805    Rental property

25-year amortization

30-year amortization (current amortization bucket)

Costs: Penalty $4,805 · Legal & closing $2,000

• Refinance rates, and the amortization can be reset to 25 or 30 years
• New mortgage $316,805 at 63.4% LTV
• Penalty and closing costs can be rolled in — nothing due at payout
• The switch above keeps the existing amortization and uses switch rates
• Pays back after this mortgage matures in 20 months, so it pays off over the new term rather than the rest of this one

Pay off the TD mortgage on 123 Bay Street Unit 2501, eliminate the ~$1,751/mo payment, and access ~$252,000 tax-free

• Youngest owner on title is 71 (all owners must be 55+ — qualifies)
• Pays off ~$185,000 mortgage and eliminates the ~$1,751/mo payment
• Est. ~$252,000 accessible (~38% of value at this age)

Penalty forecast — TD

123 Bay Street Unit 2501, Toronto

IRD penalties change when the remaining term crosses certain thresholds. This lender uses nearest rounding.

Forecast is subject to change as lenders adjust their posted rates, which affects penalty calculations and transition points.

Penalty forecast — RBC

456 King Street West Unit 1804, Toronto

Forecast is subject to change as lenders adjust their posted rates, which affects penalty calculations and transition points.

123 Bay Street Unit 2501, Toronto

Owner Occupied

Best for refinance · Best for HELOC

$735,000

Equity at 80%

456 King Street West Unit 1804, Toronto

Rental

$90,000

Equity at 80%

456 King Street West Unit 1804, Toronto

RBC

20 months

Refinance Now

Save $7,289/yr

123 Bay Street Unit 2501, Toronto

TD

55 months

Refinance Now

Save $3,067/yr

Save $3,283/yr @ 3.80% refi

Save $821/yr @ 3.80% refi

Refinance 456 King Street West Unit 1804 to lower your monthly payment

Refinance your RBC mortgage now. You'll save $431/month AND build equity faster. Break-even: 16 months (cash flow), 14 months (net worth). Both well within your 20-month term.

Save $431/mo    $5,167/yr    Break-even: 16 months

• You'll pay more interest over the life of the loan
• You'll build equity in the property more slowly

Switch to accelerated biweekly payments

Pay off your TD mortgage at 123 Bay Street Unit 2501 4 years faster by switching to accelerated biweekly payments. You'd pay $94/month more but save $26,576 in interest over the life of the mortgage.

Save 4 years    Save $26,576 interest    +$94/mo

Switch to accelerated biweekly payments

Pay off your RBC mortgage at 456 King Street West Unit 1804 4 years faster by switching to accelerated biweekly payments. You'd pay $168/month more but save $56,225 in interest over the life of the mortgage.

Save 4 years    Save $56,225 interest    +$168/mo

Monitor your variable rate mortgage

You have $310,000 in variable rate mortgages. Keep an eye on Bank of Canada rate announcements. If rates rise significantly, consider locking into a fixed rate to protect your budget.