Mortgage Renewal
Calculator Canada
Enter your balance, your current rate and the rate you are offered. The calculator shows your new payment, the change from today, the interest over the next term, and what a lump sum or a longer amortization would do.
Your mortgage
Your renewal
Estimates assume Canadian semi-annual compounding for fixed rates and monthly compounding for variable rates, and equal payments at the new rate. Your lender may calculate slightly differently. Rates change daily. Not financial advice. Terms →
What if the rate is different?
The same mortgage at rates 1.5 points below to 1.5 points above your offer. Your offered rate is highlighted.
| New rate | Payment | Change vs now | Interest over term |
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Ways to change your payment
Each row uses your new rate and term. A longer amortization lowers the payment but costs more interest. A lump sum cuts both.
| Option | Payment | Change vs now | Interest over term | Balance at end |
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What to know before you renew a Canadian mortgage
A fixed-rate mortgage in Canada is set for a term, usually five years, and then comes up for renewal. At renewal you pick a new rate and term, and your payment is recalculated using your remaining balance, the new rate and the years left on your amortization. If rates are higher than when you started, the payment goes up.
How big is the payment increase now?
Many Canadians who took five-year fixed mortgages in 2020 and 2021 at rates near 1.9% are renewing at rates close to 4.5%. In the default example above, a $400,000 balance with 20 years left, a payment at 1.89% is about $2,001 a month, and at 4.5% it is about $2,522, an increase of about $6,243 a year. At 3.9% the payment would be $2,396 and at 5.5% it would be $2,738.
The scale of renewal shock has eased. TD Economics estimated in March 2026 that the average payment increase for borrowers renewing in 2026 would be about 6%, down from about 10% in 2025, because more of the borrowers who took the lowest rates have already renewed. Your own change depends on your old rate and your balance, so use your numbers rather than an average.
Where rates stand in October 2026
According to Ratehub on October 14, 2026, the lowest five-year fixed rates were about 4.34% from mortgage brokers and about 4.84% from the major banks, and the lowest variable rates were about 3.43% to 3.65%. The prime rate was 4.45%. These change daily, so treat them as a reference and ask lenders for current offers.
Shop around, and ask about switching
- Lenders typically send a renewal offer 30 to 120 days before the term ends. The first offer is often higher than the rate they would give you if you asked.
- You can usually switch to a different lender at maturity without a prepayment penalty. Federally regulated lenders no longer require you to pass the stress test again for a straight switch with the same balance and amortization. Confirm with the new lender.
- A mortgage broker can compare many lenders at no cost to you, since lenders pay the broker.
- Ask whether the lender covers legal and appraisal fees for a switch. Many do.
Ways to lower the payment, and what each costs
- Extend the amortization. It lowers the payment, but you pay more interest over the life of the loan. The table above shows the difference over your term.
- Make a lump sum payment at renewal. A smaller balance lowers the payment and the interest. Most lenders allow lump sums at renewal without penalty.
- Choose a variable rate. The rate is lower today, but it can change. You can usually lock into a fixed rate later.
- Choose a longer or shorter term. A three-year term and a five-year term can have different rates. A shorter term gives you a chance to refinance sooner but exposes you to rate changes.
Accelerated bi-weekly payments
Accelerated bi-weekly pays half of the monthly payment every two weeks, so you make 26 payments a year, which equals 13 monthly payments. The extra payment goes to principal and shortens your amortization by a few years. The calculator shows the extra monthly cost in the options table.
Breaking the mortgage early
If you leave your lender before the term ends, you pay a prepayment penalty, which is the greater of three months of interest or the interest rate differential on fixed rates. Variable-rate mortgages typically charge three months of interest. This applies only if you break the mortgage early, not at renewal.
Frequently asked questions
How is my new payment calculated at renewal?
From your remaining balance, the new rate, and the years left on your amortization (or a new amortization if the lender allows one). Fixed rates use semi-annual compounding in Canada.
Will my payment go up when I renew?
If the new rate is higher than your old one, yes. The size of the change depends on the difference between the rates and the years left. Enter your numbers above to see it.
Can I switch lenders when my mortgage renews?
Usually yes, without a prepayment penalty, because the term has ended. Lenders typically cover appraisal and legal fees for a switch, and federally regulated lenders do not require a new stress test for a straight switch. Confirm the details with the new lender.
Should I take a fixed or a variable rate?
A fixed rate gives a stable payment. A variable rate is usually lower today but can rise. The right choice depends on how much payment risk you can handle. Use the fixed vs variable calculator to compare.
What happens if I extend my amortization?
Your payment falls, but you pay more interest in total. Your lender decides whether it will extend the amortization at renewal.
Can I make a lump sum payment at renewal?
Most lenders allow it without a penalty at renewal. A lump sum reduces your balance and lowers your payment and interest.
How early can I negotiate my renewal?
Many lenders send an offer 30 to 120 days before maturity. You can compare rates in that window and lock a rate with some lenders up to 120 days early.
Does this calculator include fees or penalties?
No. It calculates the payment and interest only. Ask your lender about fees, and note that prepayment penalties apply when you break a mortgage before the term ends.