Mortgage Renewal Calculator

When renewing your mortgage, a mortgage renewal calculator can help estimate your new monthly payments. When you renew, a mortgage calculator can help you calculate and run scenarios based on current interest rates and payment frequencies. This way you can compare options from different lenders before settling on a new rate and term. 

Use a mortgage renewal calculator to avoid the stress of manually comparing and crunching numbers when renewing your mortgage.

Key Takeaways

  • The mortgage renewal calculator helps homeowners budget for the future by helping to calculate monthly mortgage payments at renewal. 
  • A mortgage renewal calculator is a useful tool to help homeowners compare available options and maximize savings. 
  • Homeowners can plan for their mortgage renewal between 90-120 days before their mortgage term ends.

How To Use A Mortgage Renewal Calculator

The mortgage renewal calculator makes it easier to estimate and run scenarios to calculate your future mortgage payments. By changing the amortization and payment frequency, you can quickly get an overview of the total interest you will pay over the term. 

To calculate mortgage renewal payments, have the following information ready to input:

Current Property Value: Enter the current assessed value of your home here. If you are unsure, you can use CREA’s National Price Map. This map can help you find average property values in your area. 

Remaining Balance: Enter the balance you have remaining on your mortgage here. 

Province: Select your province in the dropdown menu. 

Remaining Amortization: Enter the years remaining on your mortgage here. To confirm, you can check your mortgage by clicking on it in your online banking. Alternatively, you can also look at your latest mortgage balance statement and reduce it by the number of months since it was issued. 

Note: If you are currently over-amortized (also known as negative amortization), you will need to return to your remaining original amortization schedule at the time of renewal. 

Payment Frequency: Select the frequency you wish to make mortgage payments in the dropdown. 

Note: Accelerated payment frequencies can save you time and interest on your mortgage. 

Mortgage Rate: You can choose to use the pre-selected rates by using the dropdown to adjust the term length (5-year terms being the most popular) and see how you may get a better interest rate by selecting a shorter or longer term. 

Note: If you already have a rate offer, you can enter it in the custom field. 

Why use a Renewal Calculator?

Your mortgage is likely the largest expense in your budget. If interest rates increase, this expense could significantly rise when you renew. Saving money is top of mind for most Canadians when shopping for a new rate and term. Using a renewal calculator will help you compare and save using the options available to you. 

Get a Better Mortgage Rate

Your lender is required to send you a renewal statement for receipt at least 21 business days before your current term ends. But don’t wait until the last minute. You can call or check your online banking at least 35 days before your maturity date to find out the rate you will be offered before receiving your renewal statement. This means you can start negotiating sooner. You can start shopping for a better mortgage rate as early as 120 days before your renewal as most lenders will typically hold your rate for this length of time. 

While it may be easier to sign it and forget it, you’ll rarely be offered the best renewal rate upfront from your lender. You can use the rate offered to shop around and compare against different lenders or negotiate for a better rate with your current lender. 

Switch Your Mortgage Lender

Your current lender knows there are better rates available, and they are banking on the convenience of renewing with them to keep your business. Use this time to shop around for better rates and terms. Use a mortgage expert with access to banks, mortgage finance companies, and virtual lenders to simplify your search. Compare all available rates and options from other lenders and consider switching to a new lender, which could save you significant interest over your next mortgage term. 

Accelerate Your Mortgage Payment

Use the payment frequency dropdown to see how by switching to accelerated payments, you not only save money but also take years off the life of your mortgage. By switching to an accelerated payment, you can reduce the overall interest you pay on the life of the mortgage, helping you become mortgage-free faster. 

Should I Refinance, Renew or Switch My Mortgage?

The choice to refinance, renew, or switch your mortgage will depend on where you are in your mortgage term and if there are significant benefits like the potential for cost savings or better terms. 

Renew: When you renew your mortgage, this means that you have not yet fully paid off the mortgage balance, and your current term is coming to an end. Your principal amount of the mortgage remains the same, but you would renegotiate for a new term and interest rate. Renewals allow you to explore what other lenders offer, which you can use as leverage to negotiate better terms with your current lender. Otherwise, consider switching to a new lender.  

Switch: Switching means taking your mortgage from your current lender to another and keeping the principal balance the same. This is generally to secure a better interest rate or more favourable terms. You can switch lenders at any time during your mortgage term, but keep in mind that switching before your term ends could come with significant penalties, which may negate any savings you would realize if you’re switching for a better rate. 

Refinance: Refinancing is beneficial to lower mortgage payments or access the equity in your home. When you are refinancing, you are obtaining a new mortgage with a new interest rate, terms and conditions. A refinance involves taking out a new mortgage loan and paying out your existing mortgage. If you choose to refinance you will lose your mortgage default insurance if you have it.

Of all the available options, switching your mortgage is the only option that will allow you to capitalize up to $3,000 and add it to the principal balance of your mortgage. You can use this amount to finance any fees associated with switching to a new lender.  

How Often Do I Renew My Mortgage in Canada?

Renewing your mortgage happens at the end of each mortgage term. In Canada, you can get a mortgage term that’s as short as 6 months or as long as 10 years. The most common and popular term is 5 years. 

It’s best to assess your future plans when selecting a new term length to ensure it aligns with your future needs. If, for example, you plan to sell or relocate in the short term, it may be beneficial to go with a shorter mortgage term to avoid the penalties you would need to pay for breaking your term early. Using a renewal calculator can help you compare the different term lengths and corresponding interest rates to see which option makes the most financial sense. 

Types of Homebuyers in Canada

Many different types of buyers exist, from first-time buyers, those purchasing a new home, to renewers and refinancers. Regardless of what type of homebuyer you are, a mortgage calculator is a great tool to help you calculate and compare your available options and find ways to save money. 

Purchasing a New Home: 

If you’re looking to purchase a new home, the first step is to figure out how much home you can afford. If you plan to sell your current home, you can leverage the equity from the sale and use it towards your downpayment on the new home. 

Using our mortgage affordability calculator makes it easy to quickly calculate how much you can afford to purchase a new home. To get started, you will need to know your annual income and the annual income of any co-applicants, how much you have for a down payment, and the amount of your debt payments (credit cards, car loans, student loans, line of credit, and any other liabilities). 

First-time Homebuyer: 

As a first-time homebuyer, the first thing you will need to do is determine how much you have ready as a down payment. You can then run scenarios to see how much you need for a mortgage and whether you need to pay mortgage default insurance. 

Using our mortgage down payment calculator can help you quickly and easily run scenarios based on a percentage or dollar amount to determine the total mortgage amount you will need to purchase a home. 

To get started, enter the asking price of the home and select the province where the home is located. You can then easily enter either percentages or dollar amounts to test up to 3 down payment scenarios. Use these scenarios to see the impact on the mortgage default insurance you must pay and provincial taxes, if applicable. This will help you budget for the total upfront expense of purchasing a home. 


 If you’re coming to the end of your mortgage term, you are likely shopping around for the best rates and terms to renew your mortgage. Using our mortgage renewal calculator above can help you quickly and easily estimate and run scenarios so you can calculate your future mortgage payments. 

Refinancing Your Mortgage: 

If you’re looking to refinance your mortgage, it’s likely to take out equity in your home, lower your interest-carrying costs, or consolidate debts. Using our mortgage refinance calculator can help you run scenarios to see what impact they have on your mortgage should you choose to refinance.

To get started, select what you are looking to do: either lower mortgage payments, access equity, or change your amortization, then enter the current property value and the balance remaining on your mortgage.  

What Type of Mortgage Should I Choose?

Choosing the type of mortgage comes down to your financial situation and personal risk. When choosing the type of mortgage, you should also be aware of current market conditions. 

Fixed Mortgage: Fixed mortgages mean the rate you choose remains unchanged over the mortgage term. If rates should go up or down over the term, there will be no changes to your mortgage. With fixed rates, you will renegotiate a new rate at the end of each term during your amortization period.  

  • Monthly interest and principal payments remain the same throughout the term, regardless of any changes to rates (increases or decreases). 
  • Fixed-rate mortgage rates are linked to the bond market. When these rates go up, fixed-rate mortgages tend to do the same. 

Variable Mortgage: Variable mortgages mean your rate could change over the mortgage term. Rates can either increase or decrease based on the lender’s prime rate. Variable-rate mortgages can have either fixed or adjustable payments. 

Variable rates with fixed payments:

  • If interest rates increase, more of your mortgage payment will go toward the interest portion.
  • If interest rates decrease, more of your mortgage payment will go toward the principal portion. 

Variable rates with adjustable payments:

  • When the lender’s prime rate changes (increases or decreases), the interest portion of your mortgage payment will adjust (increase or decrease) along with it. 

Note: Fixed payment variable mortgages are at risk of over-amortization (also known as negative amortization), whereas adjustable payment variable mortgages are not impacted in the same way as the payment is adjusted with changes in your lender’s prime rate.

Mortgage Term Length: The mortgage term is the length of time you have committed to the terms and conditions of the loan. Typically, in Canada, the most popular term length is 5 years though you can get terms as short as 6 months or as long as 10 years. It’s important to note that interest rates will vary based on the term length. 

You may see mortgage term lengths of

  • 6-month
  • 1-year (both variable and fixed)
  • 2-year
  • 3-year (both variable and fixed)
  • 4-year
  • 5-year (both variable and fixed)
  • 7-year
  • 10-year

Frequently Asked Questions

Can I renew my mortgage early?

Yes, most lenders will let you renew 90-120 days before your term ends. To see how early you can renew your mortgage, check with your current lender. However, if you switch lenders during those times you would still have a penalty to absorb before maturity.

Is it common to switch mortgage lenders at renewal?

Switching lenders at renewal will depend on the current market conditions and whether there is savings potential in switching from your current lender. Shopping around is always recommended to ensure you are getting the best rate and terms possible when you renew your mortgage even if only to get a competitive rate from your current lender.

How hard is it to re-qualify at renewal?

If you are renewing with your current lender, there is no need to re-qualify. If you wish to switch lenders at renewal, the new lender will need to approve your mortgage application. You will need to pass the current stress-test requirements and qualify based on the new lender’s lending criteria. Note: stress-test requalification is easier for mortgages which have not changed if originally funded before October 2016.

Can I negotiate my mortgage at renewal?

It’s always advisable to negotiate for a better rate and terms at renewal. Rarely will your lender offer you their best rate upfront. This is where shopping around and comparing options can give you leverage to negotiate for a much better rate. Otherwise, consider switching to a new lender that offers better rates and terms.

What happens if I don’t renew my mortgage?

If you don’t renew your mortgage, it will likely auto-renew into a short-term interest rate that can be extremely high. Your renewal statement should outline what the automatic renewal rate and term will be should you not renew your mortgage in time.  

If your mortgage has auto-renewed, usually to a 6-month term, you could call your lender at any time to early renew to another term without penalty. However, switching before the maturity of your shorter term would also come with a penalty.

Do mortgage payments go up or down at renewal?

The interest rate offered at the time will ultimately determine whether your mortgage payments will go up or down at renewal. If interest rates have increased since your last term, your payments will likely increase. If interest rates have decreased since your last term, your payments are likely to decrease.