Mortgage renewal calculator
See what your payment will be at your renewal rate, and how a competing offer on the same term compares.
Have an agent review your renewal offerHow much will my mortgage payment be at renewal?
Your renewal payment depends on three numbers: the balance you will owe at maturity, the new rate, and the amortization you have left. Enter those below and compare the result with what you pay today. If you locked in a low rate in 2021, expect the payment to rise even though your balance is lower.
- Inputs: balance at maturity, renewal rate, remaining amortization.
- Run it twice: once with your lender's offer, once with a competing offer.
- Multiply the monthly difference by 60 to see the gap over a five-year term.
Mortgage Details
Location Details
Estimated Payment
Your expected payment schedule over the full amortization period.
$2,712
Monthly Payment
Mortgage Details
Home Price
$500,000
Interest Rate
5%
Down Payment
$50,000 (10.0%)
Mortgage Term
5 Years
Total Loan Cost
$813,662
Amortization Period
25 Years
Loan Amount
$463,950
Payment Frequency
Monthly
Total Interest Cost
$349,712
No. of Payments
300
CMHC Premium
$13,950
Land Transfer Tax
$6,475
Results are estimates. Your actual payment may differ.
To model a renewal, set "property value" and "down payment" so the difference equals your outstanding balance, and keep the down payment at 20% or more of the value so no insurance premium is added (for example, $900,000 value and $450,000 down for a $450,000 balance). Then enter your renewal rate and remaining amortization. Ignore the land transfer tax figures; they do not apply to a renewal.
Worked example: comparing two renewal offers
This is an illustrative example. The rates are assumptions, not current quotes. You owe $450,000 at maturity with 20 years of amortization left. Your lender's renewal statement offers 4.79% for five years. Another lender offers 4.39% on the same term.
Payments here use semi-annual compounding, as Canadian fixed-rate mortgages do, and are rounded; the calculator above may differ by a few dollars. If this borrower originally took the mortgage in 2021 at around 2%, both renewal payments will be noticeably higher than what they pay today. Our guide to mortgage renewal in Canada walks through a full 2021 payment-shock example.
How the renewal maths works
Lenders use the standard amortization formula, with your outstanding balance as the loan amount:
Payment = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1]
P = outstanding balance, r = interest rate per payment period, n = number of payments left
At renewal only two inputs really change: the rate, and the balance, which has been paying down. The amortization simply continues from where it was unless you refinance to change it.
Reading your result
Look at the monthly principal and interest figure and compare it with your current statement. If the new payment is higher, build it into your budget now rather than in the month it starts. If a competing offer is lower, that difference is your negotiating room with your current lender, or a reason to switch at maturity, which costs no prepayment penalty.
- Compare offers on the same term length and mortgage type, not a three-year against a five-year.
- Check prepayment privileges and how the penalty is calculated, not just the rate.
- If you are also carrying high-interest debt, model a larger balance and read about consolidating debt at renewal.
- Ontario homeowners can see province-specific costs and examples on our Ontario renewal page.
Mortgage renewal calculator questions
How do I calculate my mortgage payment at renewal?
Use three numbers: the balance you will owe on your maturity date, the renewal rate, and the amortization you have left. The calculator runs the same amortization formula lenders use. Compare the result with your current payment to see how renewal changes your monthly budget.
Why will my payment go up at renewal if my balance went down?
Because the rate can rise faster than the balance falls. Someone who locked a five-year fixed near 2% in 2021 and renews in the low-to-mid 4% range can see the payment rise by several hundred dollars a month, even with tens of thousands of dollars paid off.
Can I lower my renewal payment by extending the amortization?
Sometimes. Your current lender may allow it, and a new lender may too, but extending beyond your remaining amortization is usually treated as a refinance, which means re-qualifying at the stress-test rate. It lowers the payment but adds years of interest, so weigh it carefully.
Do I need to pass the stress test to switch lenders at renewal?
For a straight switch, generally no. Since late 2024, federally regulated lenders do not have to re-apply the stress test when you move an uninsured mortgage to them at renewal without adding to the balance or extending the amortization. Insured mortgages already worked this way. Lenders still review credit, income and the property.
Is the calculator result what I will actually pay?
It is an estimate. Canadian fixed-rate mortgages compound semi-annually and the calculator uses a simpler monthly method, so results can differ from your lender's figure by a few dollars. Your actual payment depends on the exact balance at maturity, the rate you qualify for and your payment frequency.
Renewing in the next four months?
We'll compare your lender's offer against the market at no cost, so you know you're getting the best rate available.
Start your renewal reviewBest available rate from 8Twelve's lender panel, subject to qualification and lender approval. OAC. Your rate depends on your individual financial situation.
Related services and tools
Related services
- Breaking your mortgage to refinance: Replace your mortgage mid-term to change the rate, the amortization or the amount you owe.
- Paying off high-interest debt with home equity: Pay out credit cards and loans with home equity so one payment replaces several.
- A revolving line secured on your home: A revolving credit line secured on your home that you draw on and repay as needed.
- Borrowing against your home's value: Borrow a lump sum against your home's value for a purchase, an investment or a family need.