Underwater on a condo and not sure if you should keep grinding, redirect savings to investments, or cut losses and rent? This calculator runs all three side-by-side using Canadian-correct math — discharge penalties, TFSA, principal residence exemption.
Equity Reality Check
Cash sunk vs. net position today
3 Scenarios Compared
Keep, Redirect, or Sell & Rent
Break-Even Appreciation
% growth needed for "Keep" to win
⚠️ Negative or shrinking equity detected
Your mortgage balance is close to or above current market value. Selling today would crystallize a loss.
Auto-calculated discharge penalty: $0
Variable rate → 3 months' interest. Uncheck "Variable" above to use IRD estimate.
Total cash sunk to date
$0
Down payment + interest + carrying costs
Net equity after selling costs
Market value − mortgage − fees − penalty
Net position vs. cash invested
Net equity − total cash sunk
Continue current trajectory: scheduled P&I + extra payments, ride out price recovery.
Net worth in 10 years
Stop the extra payments. Invest that monthly surplus in TFSA/taxable instead.
Crystallize loss, deploy net equity into investments, rent comparable, invest monthly surplus.
The Verdict
Calculating...
A 10-minute call with a licensed broker can map out your real options — refinance, blend, port, or exit — with the actual penalty number from your lender.
Toronto and Vancouver condo owners who bought between 2020 and 2022 are facing a brutal question: keep grinding through a mortgage that's barely moving the principal, or cut losses and rent? This calculator runs all three real options — Keep & Grind, Keep & Redirect, and Sell & Rent — using Canadian-correct math.
Selling and renting tends to beat holding when (a) appreciation is flat or negative, (b) the price-to-rent ratio is above 25×, (c) your time horizon is 10 years or less, and (d) you have meaningful TFSA room to shelter the redeployed equity. The principal residence exemption means there's no tax penalty for crystallizing a loss — only the discharge cost and commissions.
If you can't bring yourself to sell but the extra monthly payments are crushing you, redirecting that surplus to a TFSA usually beats accelerated paydown — especially with mortgage rates in the 5% range and long-run equity returns of 7%. You stop fighting the principal and let compounding work in a tax-free account.
→ Don't own yet? Try the Rent vs Buy Calculator · → Get a precise penalty estimate · → Refinance Calculator
⚠️ Important Disclaimer
This calculator provides estimates for educational purposes only. The discharge penalty for fixed-rate mortgages varies significantly between lenders and depends on your contract rate, posted rates, and remaining term — always confirm the exact figure with your lender before making a decision. Investment returns are projections, not guarantees. Consult a licensed mortgage professional and a fee-only financial planner before selling your home or refinancing.
It depends on three things: how much equity you have left after selling costs, your time horizon, and what you would do with the freed-up cash. If your condo is flat or declining and you have meaningful TFSA room, selling and investing the net proceeds often beats holding — especially over 5–10 year windows. If you can ride out 15+ years and rents in your area are rising fast, holding usually wins. Run the numbers above with your real figures.
For variable-rate mortgages, the penalty is always 3 months' interest on your current balance — usually $3,000–$8,000 on an average mortgage. For fixed-rate mortgages, the penalty is the greater of 3 months' interest or the Interest Rate Differential (IRD), which can be $10,000–$30,000+. Always confirm the exact figure with your lender before listing.
No. In Canada, your principal residence is fully exempt from capital gains tax — both ways. You don't pay tax on a gain, and you can't claim a capital loss to offset other income. Crystallizing a loss is purely a cash event; the CRA does not get involved.
With mortgage rates around 5% and long-run equity returns near 7%, investing in a TFSA almost always beats accelerated mortgage paydown — gains are tax-free and you keep liquidity. Once your TFSA is full, the math gets closer (taxable investing vs. guaranteed 5% return). The "Keep & Redirect" scenario in the calculator runs this comparison for you.
That's the regret risk and it's real. The break-even appreciation chart in the calculator tells you exactly how much annual growth is needed for "Keep" to outperform "Sell & Rent" over your time horizon. If the market needs 6%+ annually and the trailing 5-year return has been negative, the math is signaling that selling is the higher-probability bet.
Pick a time that works best for you
