What this calculator answers
Many Canadians signed their current mortgage when rates were much lower. At renewal, the balance is smaller but the rate may be higher, and the payment is recalculated so the mortgage still pays off on schedule. This calculator shows what that new payment looks like, how much it changes, and how much of the next term goes to interest.
It also shows what happens if the rate is a little higher or lower than your offer, what a longer amortization does to the payment and the balance, and whether waiting for a better rate is worth the risk.
How the calculation works
- The new payment is calculated on your balance at renewal, the rate offered and the years left on your amortization. Fixed rates are compounded semi-annually, as Canadian fixed mortgages are.
- Change from today compares the new payment with the payment you entered.
- Interest over the term and the balance at the end come from a month-by-month schedule over the new term.
- The lock-or-wait table runs the same schedule at today's offer, at the rate you think you might get by waiting, and at a rate 0.5 points higher.
Assumptions and limits
- The renewal rate shown by default is an example only. This tool does not know current lender rates.
- Early renewal windows are set by each lender. Many allow you to renew without a penalty in the last few months of the term, often up to about 120 days before maturity. Renewing earlier than the window can mean a penalty or a blended rate. Check your renewal letter.
- Some lenders hold a renewal rate and lower it if their rates fall before your maturity date. Others lock you in. That is lender policy, so ask before you sign.
- Variable rates are held steady in this calculator. In practice they move with the lender's prime rate.
- Changing the amortization at renewal is not guaranteed. It depends on the lender and whether your mortgage is insured.
Common questions
Why did my payment go up so much?
Your payment was set so the mortgage pays off over the amortization at your old rate. At renewal it is recalculated at the new rate over the years you have left. A jump from around 2% to over 4% can raise the payment by 15% to 25% even with a smaller balance.
How early can I renew?
It depends on your lender. Many send a renewal offer and allow you to renew without a penalty in the last few months of your term, often up to about 120 days early. Ask your lender for their window and whether an early renewal keeps the option of a lower rate if rates drop.
Should I extend my amortization to keep the payment down?
It can help cash flow, but you pay interest for longer and owe more at the end of each term. Look at the balance at term end in the table. If you extend, consider increasing payments later using your prepayment privileges.
Do I have to renew with my current lender?
No. You can switch to another lender at maturity without a prepayment penalty, though your current lender may charge a discharge fee. Since November 2024, an uninsured straight switch to a federally regulated lender no longer requires the stress test. The renewal offer comparison helps you weigh offers side by side.
Sources
- Interest Act, section 6 (rules checked 2026-10-31)
- OSFI: minimum qualifying rate (rules checked 2026-10-31)