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Mortgage Renewal Calculator

Updated

The mortgage renewal calculator shows what your mortgage payment will be at a new rate when your term ends, next to your payment at your current rate. Use it with the offers you collect: your lender’s renewal offer, the rate it agrees to after you negotiate, or another lender’s rate if you are thinking of switching.

When your term ends you can renew with your current lender or move the mortgage to a new lender at the same balance, which is a switch, not a refinance. Refinancing means replacing the mortgage to borrow more or restructure it; renewal vs refinance compares the two. The mortgage renewal hub has the rest of the renewal guides.

How the calculator works

Enter:

  • Mortgage balance at renewal: the principal you will still owe when the current term ends
  • Current interest rate: your rate in the term that is ending
  • New interest rate: the rate you have been offered for the next term
  • Remaining amortization: the years left to pay off the mortgage
  • New term: the length of the next term

The calculator shows the new monthly payment, the payment at your current rate, the difference per month, the interest you would pay over the new term at each rate, and the balance left at the end of the new term at the new rate. Payments are worked out with semi-annual compounding, the convention for Canadian fixed-rate mortgages. “Savings over term” is the payment difference multiplied by the number of months in the term; it doesn’t count the lower balance that a lower rate also leaves at the end of the term.

Ontario renewal calculator

The calculator works for a mortgage anywhere in Canada, including Ontario: the payment depends on the balance, rate and amortization, not the province.

Mortgage Balance at Renewal
Current Interest Rate
New Interest Rate
Remaining Amortization (Years)
New Term (Years)
New Monthly Payment
Mortgage Balance
Old Payment (current rate)
New Payment
Monthly Savings
Savings Over Term
Interest Over Term (Old Rate)
Interest Over Term (New Rate)
Balance at End of Term

The calculator’s starting values, worked by hand: a $350,000 balance with 20 years left, renewing from 5.50% to 4.50%. The payment at 5.50% is about $2,395.37 and at 4.50% about $2,206.42, a difference of about $188.95 a month.

Getting a rate to enter

Your lender’s renewal offer is a starting point, not its best rate. The mortgage renewal guide covers the timeline (start about four months before maturity), how to negotiate with written offers from other lenders, and what happens if you let the mortgage renew automatically. Current mortgage rates show what lenders are offering, and the gap between a lender’s posted rate and the rates available by shopping can be large.

Fixed or variable at renewal

A fixed rate keeps your payment the same for the term, while a variable rate moves with the lender’s prime rate and usually costs less to break. Fixed vs variable mortgages compares them, including the penalties for leaving early.

Payment shock at renewal

If your current rate is well below today’s rates, your payment may jump at renewal. The mortgage payment shock calculator shows the increase for your balance and rates, and the ways to soften it, such as a lump-sum prepayment before renewal, a different term or, with your lender’s agreement, a longer amortization.

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Sources

The figures and rules on this page come from these sources, last checked against them on October 2, 2026. How we check facts.