What rate would a blend and extend give me?
Enter your balance, your current rate and the months left in your term, then today’s rate for a new term. Add any extra money you want to borrow and the penalty your lender quotes to break.
Your estimate
What the calculator assumes.
An estimate. Lenders use their own formulas. This one weights your current rate by the months left in your term and today’s rate by the rest of the new term, then, if you borrow more, weights that rate and today’s rate by the amounts. Ask your lender for its blended rate in writing.
Why blend. Blending avoids or reduces the prepayment penalty and lets you lock in today’s rate early or add money mid-term. The Financial Consumer Agency of Canada describes blend-to-term and blend-and-extend among its mortgage options. Compare with the penalty calculator and the refinance calculator.