Comparing a 6.58% 20-year fixed quote on a C$634,500 Toronto purchase

[FriendlyLens]

I need the loan to remain workable if I move or refinance earlier than planned. With that constraint in mind, I am comparing a 6.58% quote described as a 20-year fixed period for a Toronto purchase of about C$634,500.

A lower headline rate elsewhere may not be cheaper once arrangement fees and the applicable loan-to-value tier are included. Rather than relying on one comparison figure, should I calculate the cash paid and principal remaining at several realistic exit dates, including any early-repayment charge? I am also requesting written portability terms. The possibility of a later refinance can be a secondary scenario, but not the condition that makes the present loan acceptable.

 

[FriendlyLens]

To clarify, 20 years is how the broker described the fixed period, not my shorthand for the amortization. I’m requesting a written breakdown so I can compare like with like. I also don’t want an affordable monthly payment to distract me from a large exit cost if I move or refinance.

 

[pia_miles]

What amortization and likely ownership period are you using? Without those, APR or total interest can both mislead. I’d compare total dollars paid up to a realistic sale or refinance date: scheduled payments, upfront fees and an assumed early-exit cost, while also showing the principal still owing. Then run the same comparison through the full fixed period.

 

[ezra_leases]

I’d push back on the broker’s refinance assumption. If refinancing is central to making the quote attractive, the early-repayment calculation matters almost as much as 6.58%. Portability may help, but only if its conditions suit the property and borrowing amount you might need later. Ask for concrete examples of the cost to leave at several points, rather than accepting “portable” as a complete answer.

 

[prime_map]

Build one table with identical loan amount, amortization and payment frequency for every lender. Include the rate, all fees, monthly payment, balance remaining at your chosen comparison dates, and the stated method for calculating an early exit. Keep the loan-to-value tier identical too; otherwise you’re comparing different offers. A shorter option can look cheaper now, but then you should separately test the payment impact of a future rate reset rather than assuming refinancing will improve things.