How can a higher mortgage renewal rate change my payment?

With the same balance and remaining amortization, a higher interest rate generally increases the principal-and-interest payment. The calculator shows the monthly and annual change using the rates entered.

Do I have to renew my mortgage with the same lender?

No. Borrowers can compare renewal offers and may be able to move the mortgage to another lender, subject to qualification, fees and the terms of the existing mortgage.

When must a federally regulated lender provide mortgage renewal information?

The Financial Consumer Agency of Canada says a federally regulated lender must provide renewal information at least 21 days before the end of the mortgage term and must also notify the borrower at least 21 days before the end of the term if it will not renew.

Can I make an extra payment at mortgage renewal?

Prepayment privileges vary by mortgage contract. Extra payments within the permitted privilege may reduce principal without a penalty, while amounts above the allowed limit can trigger a prepayment charge.

Does this calculator estimate a mortgage break penalty?

No. Prepayment penalties depend on the contract and lender and can use methods such as three months interest or an interest rate differential. Ask the lender for the actual amount.

Can I change the amortization when I renew?

A renewal or refinance may involve a different amortization, but lender qualification, product rules and refinancing costs can apply. This calculator holds the entered remaining amortization constant for the payment comparison.

Mortgage Renewal Payment Calculator

Mortgage balance at renewal

Current mortgage rate

New rate scenario

Remaining amortization Extra monthly principal optional

Only use an amount permitted by your mortgage terms.

Updated automatically. Compare your existing rate with any renewal rate you want to test.

Mortgage renewal questions

Do I have to accept my current lender’s renewal offer?

No. You can compare other lenders or mortgage brokers, although switching can involve qualification, discharge, appraisal or legal/registration steps.

FCAC mortgage renewal rights →

Can extra principal reduce the renewal payment or amortization?

It can reduce the outstanding balance, but prepayment privileges and penalties depend on your mortgage contract. Confirm the permitted amount and timing with the lender.

FCAC prepayment rights →

Does this include penalties for breaking a mortgage early?

No. A break penalty can be significant and is lender- and contract-specific. Ask the lender for a written calculation before making a switch or refinance decision.

Should I compare only the interest rate?

No. Payment flexibility, prepayment privileges, portability, fees, amortization and product terms can matter alongside the headline rate.

Estimated payment at new rate—Monthly principal-and-interest estimate using the balance and remaining amortization entered.

Payment comparison

Current rate

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New rate

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New + extra principal

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Monthly payment change—

Annual cash-flow change—

Current-rate annual payments—

New-rate annual payments—

See the payment change before the renewal deadline

Renewal planning is easier when you can compare the current payment, a new-rate scenario and the effect of an optional extra principal payment. Rate is only one part of the decision: lender terms, prepayment privileges, portability, fees and your remaining amortization can change the best path.

Next planning step

Test the new payment against your full monthly household budget.

If a renewal materially changes your payment, compare the new housing cost with after-tax income and the rest of your recurring expenses.

Full Monthly Budget →Review My Renewal Scenario

Common mortgage renewal questions

Quick answers before you send your scenario.

When should I start reviewing renewal options?

Start before the term ends so there is time to compare products, qualification requirements and switching costs. Federally regulated lenders must provide renewal information at least 21 days before the end of the term.

FCAC renewal rights →

Can switching lenders save money even if the rate difference is small?

Possibly, but compare the full product: payment, fees, prepayment privileges, portability, discharge/registration costs and any qualification requirements.

What is a mortgage prepayment privilege?

It is the extra amount your contract allows you to pay toward principal without a prepayment penalty. The amount and timing vary by lender and mortgage.

FCAC prepayment guidance →

What can trigger a mortgage prepayment penalty?

Examples can include paying more than the permitted extra amount, breaking the contract, transferring to another lender before term end or paying the mortgage out early.

Can I keep my payment the same if my renewal rate falls?

Some mortgage products allow payment choices or prepayment options that can accelerate principal repayment. Confirm the exact options in the lender’s renewal offer.

FCAC paying a mortgage faster →

Is the renewal payment shown here a lender quote?

No. It is a principal-and-interest estimate using the balance, rate and amortization entered. Your lender’s payment frequency, compounding, product terms and fees can differ.

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