Mortgage renewal calculator
Many Canadians who locked in at pandemic-era rates renew in 2025–2027. Enter your balance and the rate on offer to see your new payment and what a better rate is worth.
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What happens at renewal
Your term (often 5 years) ends long before your amortization. At renewal your lender offers a new rate for a new term, applied to the balance you still owe over the amortization you have left. If rates are higher than when you signed, the payment goes up even though the balance is smaller.
Your renewal checklist
- Start 120 days early. Most lenders send an offer 21+ days before maturity, but you can usually lock a rate with another lender up to four months ahead.
- Shop around. Your current lender’s first offer is rarely its best. Use the rate table in the results: on a $450,000 balance, 0.25% is worth around $5,000 of interest over five years.
- Consider a switch. Since November 2024 a straight switch of an uninsured mortgage at renewal doesn’t require re-passing the stress test.
- Decide the amortization. You can often extend it back toward 25 years to lower the payment, but that requires re-qualifying and adds interest.
- Make a prepayment before renewal if you have savings: at maturity you can pay down any amount without penalty.
Frequently asked questions
Can I switch lenders at renewal without penalty?
Yes. At maturity there is no prepayment penalty. The new lender may cover legal and appraisal costs, and a straight switch of an uninsured mortgage no longer needs a stress test.
How much will my payment go up at renewal?
Enter your balance, remaining amortization and both rates above. For example, $450,000 over 22 years moving from 2.29% to 4.24% raises the monthly payment by roughly $450.
Should I choose fixed or variable at renewal?
Fixed gives payment certainty; variable usually starts lower and carries smaller penalties (three months’ interest) if you break it. See our guide on fixed vs variable.
What if I can’t afford the new payment?
Ask about extending the amortization, a shorter or longer term, or blending. Talk to your lender before maturity; FCAC also lists options for borrowers in difficulty.
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