Mortgage Renewal Calculator Canada

At renewal, the rate on the offer letter is only the starting point. This calculator shows what staying at your current rate would cost over the new term versus the renewal rate you are quoted, in monthly payment, in interest over the term, and in the balance you will still owe when the term ends.

Balance at renewal ($)Remaining amortization (years)Your current rate (%)Renewal rate offered (%)New term length (years)

Canadian semi-annual compounding, monthly payments. Renewal offers, penalties for switching lenders and stress-test rules vary; a switch at renewal often needs a new application.

How it works

Renewal is the one moment you can change lenders, rate type and payment schedule with no prepayment penalty on your current mortgage. Lenders know most people simply sign the first offer, which is why that first offer is rarely their best rate.

The calculator holds balance and amortization constant and varies only the rate, over the term you enter. The interest saved over the term is the number to compare against any switching costs or cash-back conditions attached to a competing offer.

Worked example

The calculator’s own output for a $380,000 balance with 20 years of amortization left, comparing 5.00% with a 4.25% renewal offer over a 5-year term:

Item	Amount
Balance / remaining amortization	$380,000.00 over 20 years
Payment at current 5.00%	$2,497.08 a month
Payment at renewal 4.25%	$2,345.57 a month
Interest over 5-year term, current rate	$86,662.43
Interest over 5-year term, renewal rate	$73,309.94
Interest saved over the term	$13,352.49
Balance after 5 years, renewal rate	$312,575.86

Frequently asked questions

Do I have to pass the stress test to renew?

If you stay with your current lender on a straight renewal, generally no new stress test is required in Canada. If you switch lenders, refinance or change the amount or amortization, the new lender will qualify you, usually at the higher of your rate plus 2% or the Bank of Canada benchmark floor.

When should I start shopping for a renewal rate?

Most lenders let you lock a rate 90 to 120 days before maturity. Starting then gives you a held rate as a fallback while you negotiate.

Is the first renewal offer negotiable?

Almost always. The mailed offer is an opening position. A competing quote from another lender or a broker is the strongest evidence you can bring to the negotiation.

Should I pick fixed or variable at renewal?

Fixed buys payment certainty for the term; variable has historically cost less on average but can rise. The right choice depends on how much payment change your budget can absorb, not on a rate forecast.

Can I change my amortization at renewal?

Yes. Shortening it raises the payment and cuts total interest; lengthening it does the opposite. Renewal is the cheapest time to make that change because no penalty applies.

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For education only. This calculator gives estimates, not financial, tax or legal advice. Figures use 2026 rates where a rate is built in; confirm your own numbers before making a decision.