Mortgage Renewal Calculator
Compare renewal options and find the best rate for your mortgage
How to use this toolRenewal Details
The amount you still owe on your mortgage
Years left to pay off your mortgage
Common terms: 1, 2, 3, 5, 7, or 10 years
The rate offered for your renewal
Payment: $1,926.08
Added to each payment (goes directly to principal)
Most lenders allow 10-20% prepayment annually
Additional Monthly Costs
Payment Breakdown
Loan Summary
Your 5-Year Term at 5.5%
Here's what you'll pay during your 5-year term:
💡 Shopping Tip: Use comparison mode to see how different offers affect your term. Even a 0.25% difference adds up!
Mortgage Balance Over Time
Annual Principal vs Interest
Renewal Pro Tips
1. Don't accept your lender's first offer - It's often their highest rate. Shop around and negotiate down by 0.5-1% or more.
2. Keep your old payment if rates drop - Got a lower rate? Keep paying your old (higher) amount. The extra goes directly to principal with zero lifestyle change!
Your Mortgage Renewal Guide
When to Start Shopping
Begin shopping for rates 120 days (4 months) before your renewal date. Many lenders will lock in a rate for 120 days, protecting you if rates rise. If rates drop before renewal, most lenders will give you the lower rate.
Fixed vs. Variable Rates
Fixed Rate Mortgages
Your interest rate stays the same for the entire term (typically 1-10 years).
Variable Rate Mortgages
Your rate fluctuates with the Bank of Canada's prime rate.
💡 Pro Tip: Historically, variable rates have saved borrowers money over the long term (20+ year periods). However, if you value payment stability and budget certainty, a fixed rate provides peace of mind.
Negotiating Your Rate
Get Multiple Quotes
Contact at least 3-5 lenders including banks, credit unions, and mortgage brokers. Use comparison mode above to evaluate offers side-by-side.
Use Your Best Offer as Leverage
Take your lowest rate back to your current lender. Many will match or beat it to keep your business.
Consider the Posted vs. Actual Rate
Banks advertise "posted rates" but almost never charge them. You should be getting a discount of 1-2% below posted rates.
Ask About Prepayment Options
Some lenders offer better rates but restrict prepayments. Make sure you can make lump-sum payments (usually 10-20% annually).
Switching Lenders - What Are The Costs?
If you find a better rate elsewhere, you can switch lenders at renewal time without penalty. However, there are costs to consider:
Typical Costs When Switching Lenders:
- • Legal Fees (some lenders cover this)$800-$1,500
- • Appraisal Fee$300-$500
- • Title Insurance$200-$400
- • Discharge Fee (charged by old lender)$200-$350
- Total estimated cost:$1,500-$2,750
💰 Good News: Many lenders offer "cash back" or will cover your legal fees to win your business. A typical 0.5% rate reduction on a $280,000 mortgage saves you about $700/year or $3,500 over a 5-year term - usually worth switching even after paying the fees!
The "Keep Your Old Payment" Strategy
💰 One of the smartest renewal strategies: If you get a lower rate at renewal, keep paying your old (higher) payment amount!
Example:
Your old payment was $2,000/month at 6%. After renewal at 5.5%, your new required payment is only $1,850. Instead of pocketing the $150 savings, keep paying $2,000 - the extra $150 goes directly to principal each month.
💡 Pro Tip: Use the "Extra Amount Per Payment" field above to see the impact of keeping your old payment!
Prepayment Privileges - Don't Overlook Them!
Most Canadian mortgages allow you to prepay a portion of your mortgage each year without penalty. This is a powerful way to save on interest:
- •Typical allowance: 10-20% of your original mortgage amount per year
- •When it's applied: Goes directly to principal, not interest
- •Impact: Even $5,000/year can save tens of thousands in interest
💡 Strategy: Use tax refunds, bonuses, or windfalls as lump-sum payments. The calculator above lets you see the impact - try adding $5,000 or $10,000 annual lump sums to see your potential savings!
Increasing Payment Frequency
Switching from monthly to bi-weekly or weekly payments can save you thousands without any sacrifice:
- •Accelerated bi-weekly: Pay half your monthly payment every 2 weeks (26 payments/year = 13 monthly payments)
- •Why it works: You're making an extra monthly payment each year without feeling it
- •Typical savings: 2-3 years off your amortization, $15,000-$30,000 in interest saved
⚠️ Watch out: Make sure you're choosing "accelerated" bi-weekly, not regular bi-weekly. Regular bi-weekly just divides your monthly payment by 2 with no extra benefit.
How Much Could a Lower Rate Save You?
Example: On a $280,000 mortgage with 20 years remaining:
That 0.5% difference is worth negotiating for! Use the comparison mode above to see your actual savings.
Your Renewal Action Plan
Start shopping for rates from multiple lenders
Lock in your best rate (most hold for 120 days)
Use your best offer to negotiate with your current lender
Make your final decision and complete paperwork
Set up accelerated payments and automatic prepayments if possible
Frequently Asked Questions
Last updated: July 2026
Start at least 120 days (4 months) before your renewal date. Most lenders allow you to lock in a rate up to 120 days in advance without penalty. This gives you time to compare rates from your current lender, other banks, credit unions, and mortgage brokers. If rates drop before your renewal date, you can often re-lock at the lower rate.
Yes. At the end of your mortgage term, you can switch lenders without paying a prepayment penalty. You will need to re-qualify under current stress test rules, and there may be legal or discharge fees ($200-$500 typically). The new lender often covers the appraisal and legal costs to win your business.
Reviewed by Alexandre Bernier, CFP®, CIM®
Educational tool - estimates only. Not individualized financial, investment, tax, or legal advice. Using it does not create an advisor-client relationship. Rules and figures change; verify against current CRA sources and consult a qualified professional. Editorial policy →