Mortgage Renewal Calculator Canada Guide

Gather the inputs for a renewal payment estimate

Find the remaining principal expected at the end of the current term. Your lender's renewal statement should show the balance at renewal, offered interest rate, payment frequency, term, and applicable charges. A federally regulated lender must provide that statement at least 21 days before the end of the term, but waiting for it can leave too little time to compare alternatives.

For an earlier estimate, use the current amortization schedule or account balance and project it forward to the renewal date. Enter that future balance in the refinance break-even calculator, set fees and the prepayment penalty to zero for an at-term renewal, and run each proposed rate with the same remaining amortization.

• Projected principal on the renewal date
• Offered annual rate and fixed or variable structure
• Remaining amortization and proposed term
• Monthly, biweekly, accelerated biweekly, or other payment frequency
• Transfer, appraisal, legal, registration, discharge, or administration costs

Measure payment shock with more than one rate

Model the renewal offer, at least one competing offer, and a higher-rate scenario. Compare the dollar payment, total interest during the proposed term, and expected balance at the next renewal. A single monthly number can hide the cost of stretching the amortization or selecting a longer term.

Bank of Canada staff estimated that about 60% of outstanding Canadian mortgages would renew in 2025 or 2026. Under the study's assumptions, the average monthly payment for 2026 renewals could be 6% above December 2024, while five-year fixed borrowers renewing in 2026 could average a 20% increase. Those are portfolio estimates, not forecasts for a specific household, so your balance and offer matter more than the national average.

Compare staying with switching lenders

The existing lender's renewal letter is a starting point, not a complete market comparison. Ask for a better rate and compare the term, prepayment privileges, penalty method, portability, collateral-charge implications, service, and optional insurance. A slightly lower rate may not win after transfer costs or less flexible terms are included.

Since November 21, 2024, OSFI has not required a set minimum qualifying rate for an uninsured straight switch between federally regulated lenders when neither the loan amount nor amortization increases. This does not guarantee approval or remove underwriting. The new lender can apply its own criteria, and refinancing, increasing the balance, or extending amortization changes the situation.

Use a renewal checklist before accepting

Start several months before the term ends. Confirm the maturity date, registration type, insurance certificate if applicable, transfer costs, and the documents a new lender will require. Keep written copies of each offer so the rate, assumptions, and conditions can be compared on the same day.

Before signing, rerun the payment with the final balance and disclosed rate. Check whether the household budget still leaves room for taxes, insurance, condominium fees, repairs, other debt, and emergency savings. If the payment is difficult, contact the lender early and compare options with a qualified professional before extending amortization or adding debt.

Frequently asked questions