Etobicoke renewal math: three paths, one balance
The three options above are usually described and rarely modelled. Here they are on the same $682,365 balance over a 25-year amortization — the balance carried at renewal by an Etobicoke home at the $1,049,793 average (Etobicoke (TRREB districts W06–W10) average selling price, TRREB Market Watch).
| Path | Rate | Payment | Paid over 5 years | Cost to arrange |
|---|---|---|---|---|
| A. Stay — accept the letter | 4.64% | $3,830/mo | $229,800 | $0, and no paperwork |
| B. Switch — same balance, new lender | 4.19% | $3,660/mo | $219,600 | Usually $0 — discharge and appraisal covered |
| C. Refinance — consolidate $25,000 of debt | 4.29% | $3,833/mo on $707,365 | $229,980 | Legal + appraisal; full re-qualification |
Path B beats Path A by $170/mo — $10,200 over the term — for the same debt, the same amortization and, on a standard charge, no cost to you. That is the base case, and for most Etobicoke renewals it is the answer.
Path C is where the headline rate stops being the point. It carries the highest payment of the three, and it is still the cheapest month for some households: illustratively, a borrower also servicing $25,000 of card debt at 19.99% is paying roughly $750/mo in minimums on top of the mortgage. Folding that into the mortgage lifts the payment to $3,833 but removes the $750, a net cashflow improvement of about $577/mo against Path B.
The honest caveat, which most consolidation pitches omit: that debt is now amortized over 25 years at mortgage rates instead of cleared in two or three at card rates, so unless you keep directing the freed-up cashflow at the balance, you can pay more total interest while feeling better every month. Refinancing also re-opens full qualification and legal costs. Model it before you sign — our renewal calculator and refinance-vs-renewal comparison run your own figures, and the payments above assume no change in amortization, taxes or insurance.