Specialized Financial Planning Calculators

Buy vs Refinance Calculator Move or Stay

Compare staying and refinancing with cash-out against selling the current home and buying another property, using payment and projected-equity measures.

Refinance cash-out modelNet sale proceedsNew-home mortgage estimatePayment comparison

Calculation inputs

Compare moving with staying and refinancing

Model a refinance with cash-out against selling the current home and using net sale proceeds toward another purchase.

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Transaction and projection assumptions
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How the calculation works

Understand the formula before relying on the result

Build the refinance loan

Current mortgage balance, requested cash-out, and refinance costs are combined and amortized at the entered refinance rate.

Calculate sale proceeds

Current home value is reduced by selling costs and the existing mortgage balance.

Build the purchase mortgage

Net sale proceeds after purchase closing costs are applied to the new-home price, with any remaining amount treated as the new mortgage.

Compare future equity

Each property value grows at its entered appreciation rate and the projected mortgage balance is deducted after the comparison period.

Interpret the result

This is a move-versus-stay model

It assumes the current home is sold for the purchase option and does not model owning both properties.

Equity is not cash flow

The option with more projected equity may still have a payment or transaction cost the household cannot support.

Property differences matter

Taxes, utilities, repairs, commute, condo fees, renovation, and lifestyle value may differ between homes.

Penalties can change the result

Breaking the existing mortgage, discharging security, and arranging new financing can add meaningful costs.

Common mistakes

  • Treating gross home equity as sale proceeds.
  • Ignoring selling costs, mortgage penalties, land transfer tax, and closing costs.
  • Comparing payments without comparing amortization and future balances.
  • Assuming both homes appreciate at the same rate.
  • Using all sale proceeds without preserving emergency reserves.

What lenders review

  • Current mortgage payout and refinance penalty.
  • Maximum refinance LTV and cash-out purpose.
  • Sale proceeds, deposit timing, bridge needs, and source of down payment.
  • Qualification for the new mortgage under current stress-test rules.
  • Property-specific taxes, condo fees, appraisal, and marketability.

Planning tips

  • Add the actual mortgage payout penalty to transaction costs.
  • Use realistic selling and purchase closing costs.
  • Compare monthly housing costs, not mortgage payment alone.
  • Preserve post-closing liquidity in both options.
  • Run different appreciation rates and time horizons.

Connected HopeWell knowledge

Connect the buy vs refinance calculator to the mortgage decision

Use the result alongside HopeWell's guide chapters, glossary definitions, real underwriting case studies, service pages, and related calculators.

Calculation pathway

Related mortgage calculators

Continue into qualification, purchase costs, equity, refinancing, HELOC planning, and mortgage comparison using the connected calculators below.

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Mortgage Refinancing Calculator Canada

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Home Equity Calculator Canada

Estimate gross equity, accessible equity, sale equity, and secured borrowing room under multiple LTV assumptions.

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Mortgage Penalty Calculator Canada

Compare three months of interest with an illustrative IRD and estimate the total cost to break or prepay a mortgage.

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Ontario Closing Cost Calculator

Build a detailed cash-to-close estimate with taxes, legal fees, adjustments, insurance, and moving costs.

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Ontario Land Transfer Tax Calculator

Calculate Ontario and Toronto land transfer taxes, first-time buyer rebates, and non-resident speculation tax.

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Rent vs Buy Calculator Canada

Compare projected homeowner sale equity with a renter investment portfolio over a selected time horizon.

Frequently asked questions

Questions about this calculation

What does the refinance option assume?

It assumes the existing mortgage is replaced by a new loan equal to the current balance plus cash-out and entered refinance costs.

How is the new-home down payment determined?

The model applies estimated net sale proceeds after selling costs, existing mortgage payout, and purchase closing costs.

Does the calculator include land transfer tax?

Only if you include it within purchase closing costs. The separate Land Transfer Tax Calculator can produce a more detailed estimate.

What if I keep the current home as a rental?

That is a different scenario involving two mortgages, rental income, carrying costs, and lender rental treatment; this calculator assumes a sale.

Does higher projected equity mean the option is better?

Not necessarily. Payment affordability, liquidity, risk, location, housing needs, and transaction certainty also matter.