Scarborough renewal math: three paths, one balance
The three options above are usually described and rarely modelled. Here they are on the same $505,888 balance over a 25-year amortization — the balance carried at renewal by a Scarborough home at the $778,289 average (Scarborough (TRREB districts E04–E11) average selling price, TRREB Market Watch).
| Path | Rate | Payment | Paid over 5 years | Cost to arrange |
|---|---|---|---|---|
| A. Stay — accept the letter | 4.64% | $2,839/mo | $170,340 | $0, and no paperwork |
| B. Switch — same balance, new lender | 4.19% | $2,713/mo | $162,780 | Usually $0 — discharge and appraisal covered |
| C. Refinance — consolidate $25,000 of debt | 4.29% | $2,877/mo on $530,888 | $172,620 | Legal + appraisal; full re-qualification |
Path B beats Path A by $126/mo — $7,560 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 Scarborough 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 $2,877 but removes the $750, a net cashflow improvement of about $586/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.