# Mortgage Renewal Payment Calculator for Canadians

> Mortgage costs change when a term ends. Test a new rate and see the payment, yearly change and interest over a 1, 3 or 5 year term

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. As the Financial Consumer Agency of Canada puts it:

At the end of each term, you'll need to renew your mortgage.

Mortgage terms and amortization, [canada.ca](https://www.canada.ca/en/financial-consumer-agency/services/mortgages/mortgage-terms-amortization.html)
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](https://tax-services.ca/calculators/mortgage/fixed-vs-variable-mortgage) 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 |

A handy ballpark falls out of the table. On this balance, every extra percentage point adds roughly $218 to $228 a month, so a quick guess at your own bill is easy before you even open the calculator.

## 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](https://tax-services.ca/calculators/mortgage/mortgage-stress-test) lets you check that ahead of time.

Start early. Plenty of people leave it until the renewal letter lands, and then sign because the deadline feels close. Give yourself a few weeks to compare, and ask your current lender whether it will sharpen its offer once it knows you're looking elsewhere.

## What if the new payment is too much?

Look at the budget before you look at the rate. Maria in Winnipeg, facing an extra $300 a month, has a few levers: a lump sum from savings to cut the balance, a longer amortization to spread the debt, or a different lender. The first two cost you in other ways. A longer amortization means more interest overall, and a lump sum drains savings you may want kept in reserve.

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](https://tax-services.ca/calculators/mortgage/mortgage-refinance) handles it. Breaking a term before it ends has a cost of its own, which the [mortgage penalty calculator](https://tax-services.ca/calculators/mortgage/mortgage-penalty) shows.

## The sources behind this page

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. 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](https://tax-services.ca/calculators/mortgage/mortgage-amortization) shows it.

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Source: https://tax-services.ca/calculators/mortgage/mortgage-renewal
Last updated: 2026-10-08
Independent information site. Not affiliated with the CRA. No services, no guarantee of accuracy. See https://tax-services.ca/disclaimer