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
Enter your existing mortgage details and the new funds you want to add.
Your Blended Rate
4.58%
*Actual blended rate may vary based on lender policies.
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).
Keep existing mortgage, add new funds
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.
A blended rate combines your existing mortgage rate with a new rate, weighted by the balances of each portion.
Breaking your mortgage early can cost thousands. Blending lets you keep your existing rate on your current balance while adding new funds.
Need funds for renovations, investments, or debt consolidation? A blend-and-extend lets you tap equity without refinancing.
Lock in today's rates before they potentially rise. Many lenders allow early renewals with blended rates up to 120 days before maturity.
The blended rate is calculated by weighting each rate by its balance proportion over the new term length.
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
Consider a blend-and-extend when you need to access home equity, want to lock in current rates before potential increases, or when breaking your mortgage would result in significant prepayment penalties.
Most major Canadian banks and lenders offer blend-and-extend options, but the terms and conditions vary. Some lenders have restrictions on when you can blend and the maximum amount of new funds. A mortgage broker can help you navigate these options.
Not always. If prepayment penalties are minimal or if you can get a significantly lower rate by refinancing, breaking your mortgage might be more cost-effective. We recommend comparing both scenarios with a mortgage professional.
This calculator provides a good estimate of your blended rate, but actual rates may vary. Each lender has their own calculation method, and some may include additional factors. For an exact quote, please speak with one of our mortgage professionals.
Our mortgage brokers can help you determine if a blend-and-extend is right for your situation. Get a personalized analysis with no obligation.
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