Blended Rate Calculator
Calculate your blended mortgage rate when combining your existing mortgage with new funds or extending your term early. See if a blend-and-extend makes financial sense.
Avoid Penalties
Blend instead of breaking
Access Home Equity
Add funds to your mortgage
Compare Options
Blend vs. break analysis
Calculate Your Blended Rate
Enter your existing mortgage details and the new funds you want to add.
1 Existing Mortgage
2 New Funds / Extension
Your Blended Rate
4.58%
*Actual blended rate may vary based on lender policies.
Blend vs. Break Comparison
Enter your prepayment penalty to see which option saves you more money over the new term.
Contact your lender for exact penalty amount. Typically 3 months interest or IRD (Interest Rate Differential).
Blend & Extend
Keep existing mortgage, add new funds
Break & Refinance
Pay penalty, get new mortgage rate
Your Potential Savings
$12,440
by choosing Blend & Extend over the term
*This comparison is for illustrative purposes. Actual costs depend on your specific lender terms, penalty calculations, and current market rates.
What is a Blended Mortgage Rate?
A blended rate combines your existing mortgage rate with a new rate, weighted by the balances of each portion.
Avoid Prepayment Penalties
Breaking your mortgage early can cost thousands. Blending lets you keep your existing rate on your current balance while adding new funds.
Access Your Home Equity
Need funds for renovations, investments, or debt consolidation? A blend-and-extend lets you tap equity without refinancing.
Extend Your Term Early
Lock in today's rates before they potentially rise. Many lenders allow early renewals with blended rates up to 120 days before maturity.
Simple Calculation
The blended rate is calculated by weighting each rate by its balance proportion over the new term length.
How is the Blended Rate Calculated?
Blended Rate Formula:
(Balance₁ × Rate₁ × Months₁ + Balance₂ × Rate₂ × Months₂) ÷ (Total Balance × New Term)
Balance₁
Your existing mortgage balance
Rate₁ & Rate₂
Your current rate and new market rate
Months
Remaining term vs. new term months
Frequently Asked Questions
Ready to Explore Your Options?
Our mortgage brokers can help you determine if a blend-and-extend is right for your situation. Get a personalized analysis with no obligation.