Cashback or the lower rate?
Compare two fixed-rate offers over the term: what you pay, what you still owe at the end, and the cash you get back.
Option A wins by $84.38 over the 3-year term.
What the cashback has to cover
Option B’s higher rate means bigger payments and a bigger balance left at the end of the term. The cashback has to make up for both.
- Extra payments · $851.17
- Extra still owed · $333.21
- Cashback, if you keep the term · $1,100.00
The cashback falls $84.38 short.
The breakdown, over the 3-year term
| Figure | Option A4.54%Lower net cost | Option B4.64% |
|---|---|---|
| Monthly payment | $2,048.57 | $2,072.21 |
| Total paid over the term | $73,748.46 | $74,599.64 |
| Balance at end of term | $383,925.91 | $384,259.12 |
| Cashback received | $0.00 | $1,100.00 |
| Net cost over the term | $457,674.38 | $457,758.76 |
Net cost is what you pay over the term, plus what you still owe at the end, minus any cashback. Amounts are rounded to the cent; the difference is worked out before rounding.
Weighing two real offers? We’ll compare the full terms, including prepayment privileges and penalties.
Book a strategy callEstimates for illustration only, based on the figures you entered. Not a mortgage approval, pre-approval or offer. Lender terms, cashback conditions and penalties vary; confirm them in your mortgage commitment. Gaurav Sophat · Mortgage Agent Level 2 · DLC FC Funding #10671.
What is this based on?
All calculations happen in your browser. Your figures are not collected or saved.
Fixed rates use the Canadian convention: interest compounds semi-annually and payments are monthly. Each option’s payment is set by its rate and the amortization; the comparison then stops at the end of the term.
- Monthly rate
- (1 + rate ÷ 2)^(1/6) − 1
- Total paid
- Monthly payment × months in the term
- Balance at end of term
- What is still owed after the term’s payments
- Net cost
- Total paid + balance − cashback
Not included: prepayments, penalties, legal or appraisal fees, rate changes at renewal, other payment frequencies, and the time value of money. Cashback is treated as received in full.