About this calculator
Roughly seven in ten Canadian borrowers sign the first renewal letter their lender sends — which is why the first offer is rarely the best one. At maturity there is no break penalty, so the only question is arithmetic: what does each rate cost you over the new term? Comparing monthly payments alone understates the answer, because a lower rate also leaves you owing less at the end of the term. This calculator adds both halves together — every payment made during the term, plus the balance still outstanding when it ends — then subtracts the real cost of moving: a discharge fee from your old lender (typically $200–$400), legal and appraisal costs, partly or wholly covered by many acquiring lenders.
Switching used to carry a hidden tax: a new lender had to re-qualify you under the B-20 stress test. Since November 21, 2024 that is gone for a straight switch of an uninsured mortgage — same balance, same remaining amortization, no new money — at federally regulated lenders. (Insured mortgages could already switch insurers' lenders without a new test, and renewing with your existing lender never required one.) Cash-back refinances and amortization extensions still need full qualification, which is why the stress-test calculator sits next to this one.
How to use it
- Enter the balance that will be owing on the renewal date and the amortization remaining at that point (not the original 25 years — find it on your statement).
- Enter the term you are considering and your current lender's renewal offer.
- Enter the best genuine alternative rate you have been quoted elsewhere, for the same term length.
- Set the switching costs honestly — then try $0, because many lenders will cover transfer costs to win the business, and that fact is itself a negotiating tool with your current lender.
- Read the net saving and the verdict; the year-by-year table shows the balance gap widening (or not) across the term.
The formula
Over any horizon shorter than the full amortization, payments alone are not the cost of a mortgage — the debt you still owe at the end is the rest of it. Summing the two makes different rates (and different payment sizes) directly comparable, and it equals the interest difference between the two paths plus any fee difference, which the year-by-year table breaks down.
Worked example
A $400,000 balance with 20 years of amortization left, renewing for a 5-year term: your lender offers 4.80%, a competitor quotes 4.30%. Staying costs $2,585.48 a month and leaves $332,337 owing; switching costs $2,479.49 a month and leaves $329,332 owing. Interest over the term falls from $87,466 to $78,102 — a saving of $9,364. Subtract $1,500 of switching costs and switching is worth $7,864 over the term, about $106 a month plus a $3,005 smaller balance at the end.
Sources: Standard Canadian semi-annual-compounding amortization; straight-switch stress-test exemption for uninsured mortgages per OSFI (effective November 21, 2024). Last updated: October 2026.
Frequently asked questions
Is there a penalty for switching lenders at renewal?
No — penalties apply only when you break a term early. At maturity you may move freely. The costs of switching are administrative: your old lender's discharge fee (about $200–$400), plus legal and possibly appraisal fees of roughly $1,000–$1,500 in total. Many lenders cover some or all of these to win a switch, so ask before you budget them.
Do I have to pass the stress test to switch lenders at renewal?
For a straight switch of an uninsured mortgage — same balance, same amortization, no new money — no: OSFI removed that requirement on November 21, 2024 for switches between federally regulated lenders. The new lender still reviews your file and the property, and if you borrow more or stretch the amortization, full B-20 qualification applies again.
How much can I save by switching at renewal?
Roughly $2,300 per $100,000 of balance over a 5-year term for every 0.50 points of rate — on a $400,000 balance, half a point is worth about $9,364 of interest over five years before switching costs. Your current lender knows this arithmetic too, which is why bringing a real competing quote to the renewal conversation is the single most effective move a borrower has.
When does my current lender send the renewal offer?
Typically 120 days before maturity you can lock a rate, with the formal renewal statement arriving at least 21 days before the term ends. The early offers are the expensive ones; rates offered tend to improve as maturity approaches and competitors quote. Start shopping about four months out, and never let the mortgage roll into an open term by default — open rates are the highest a lender charges.
Should I change my amortization or payment at renewal?
Renewal is the cheapest moment to do it: shortening the amortization (or keeping the payment from a higher-rate term) can take years off the mortgage with no penalty and no qualification if you stay — a lender switch with an extended amortization counts as new borrowing and is stress-tested. The table here holds amortization constant so the rate comparison stays clean; model a shorter schedule on the main Canada calculator.
What formula does this canada mortgage renewal calculator use?
Cost of a path over the term = monthly payment × months in term + balance owing at the end of the term + fees. Net saving from switching = cost of staying − cost of switching. Over any horizon shorter than the full amortization, payments alone are not the cost of a mortgage — the debt you still owe at the end is the rest of it. Summing the two makes different rates (and different payment sizes) directly comparable, and it equals the interest difference between the two paths plus any fee difference, which the year-by-year table breaks down. The worked example on this page applies the formula step by step with real numbers, so you can verify the result by hand.