Renew a $420,000 balance at 4.60% instead of 3.20% and your monthly payment climbs from $2,367.10 to $2,669.96, which is $302.86 more every month. Enter your balance, your current rate and the rate your lender offered to see the same change on your own mortgage.
What actually happens when a term ends?
The term ends. The loan doesn’t. Whatever you still owe rolls into a new term at the rate on offer that day. The amortization keeps counting down, so 20 years remaining stays 20 years remaining, only at a new price. That’s why a rate change hits the payment so hard, even when nothing else about your loan has moved. The calculator holds the years left steady and changes the rate alone.
You can pick a new term of 1, 3 or 5 years. Longer terms hold your payment steady for longer. Short ones bring repricing sooner, which can work in your favour if rates fall and against you if they climb, and nobody can tell you in advance which way it will go when the next renewal comes round for you. Fixed against variable is a separate choice, which the fixed vs variable mortgage calculator covers.
What will I pay at different renewal rates?
Here’s the default mortgage at a few renewal rates, using a $420,000 balance and 20 years left. Today’s payment is $2,367.10 at 3.20%.
| Renewal rate | Monthly payment | Change from today |
|---|---|---|
| 2.20% | $2,162.71 | -$204.39 |
| 3.20% | $2,367.10 | $0.00 |
| 3.60% | $2,451.68 | +$84.58 |
| 4.60% | $2,669.96 | +$302.86 |
| 5.60% | $2,897.62 | +$530.52 |
What does 4.60% cost over five years?
Say you owe $420,000 at 3.20% and your lender offers 4.60%, with 20 years of amortization left. The new payment is $2,669.96, up $302.86 a month, or $3,634 a year. Over five years you’d pay $87,900 in interest. The same term at your old rate would have cost $60,561, so the higher rate adds about $27,300. After those five years the balance is $347,703.
A three year term on the same numbers gives the same payment, with $54,726 in interest against $37,896 at the old rate. The calculator also shows the payment one point above and one point below your offer, which helps if your lender hasn’t given you a final rate yet.
Should I accept the first offer?
No. Your lender’s offer is one rate among many, so get it in writing and set it beside quotes from other lenders. If you plan to switch, you may have to show that your income supports the loan, and the mortgage stress test calculator lets you check that ahead of time.
The estimate leaves out fees, insurance changes and any extra payments you make. It assumes monthly payments and the same amortization as today. Want a longer amortization, or more borrowed? That’s a refinance, and the mortgage refinance calculator handles it. Breaking a term before it ends has a cost of its own, which the mortgage penalty calculator shows.
Where do the numbers come from?
The payment uses a Canadian style formula, with the rate compounded twice a year and payments taken monthly. You type the inputs, and nothing is pulled from a lender. For general guidance, read the Financial Consumer Agency of Canada page on renewing a mortgage. This site has no link to any government body, and the figures are estimates only.
Curious how a payment splits between interest and principal over the years? The mortgage amortization calculator shows it.
Frequently asked questions
How much more will I pay after renewal?
That depends on the gap between your old and new rate. On $420,000 with 20 years left, going from 3.20% to 4.60% adds $302.86 a month.
Does my amortization start over at renewal?
Not by default, since the calculator keeps the years you have left. Some lenders let you stretch it, which lowers the payment but raises the total interest.
Which term is best?
The calculator offers 1, 3 or 5 years. A longer term fixes your payment for longer, and a shorter one lets you reprice sooner.
Can I move to another lender at renewal?
Yes, and asking for competing quotes is worth the effort. Check your income against the stress test first, in case the new lender wants you to qualify.
Do the results include fees?
No, only payments and interest. Ask any lender about legal, appraisal or transfer fees in writing.
Sources and updates
Updated: . How we check rates · Editorial team · Updates
Estimate only. These figures are a planning estimate, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns, and we don't offer tax, legal or accounting services. We have no connection with the Canada Revenue Agency, Revenu Québec or any provincial government. Your real amounts depend on details this tool cannot see, so confirm them with an official source or a qualified professional before you act.