Canada Mortgage Renewal Calculator
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What's your renewal going to cost?
| Year | Total Paid | Principal Paid | Interest Paid | Balance | |
|---|---|---|---|---|---|
| Term Total | $0.00 | $0.00 | $0.00 | $0.00 | |
The line above displays the totals at the end of your mortgage term. At this time, you will renew your mortgage again and choose among the rates that are available. | |||||
Tips for using our mortgage renewal calculator
If you’re unsure what to enter in the "Interest Rate" field, check today's mortgage rates. Then, use a rate lenders are offering today to get a general sense of what you might have to pay.
Use the calculator's “Compare” function to take a side-by-side look at what other mortgage scenarios — different rates, amortization periods or payment frequencies — might cost.
Keep in mind that calculators only provide general estimates. They don’t factor in important details like your credit score, which will have a major impact on the interest rate you’re offered.
What a mortgage renewal calculator can’t estimate
A mortgage renewal calculator is a handy tool for estimating your future mortgage payment and comparing the impact of different rates. But there are other factors to consider when pricing out the next phase of your mortgage.
How much debt you have
If your household debt has increased or your credit score has taken a hit during your mortgage’s current term, it could impact which lenders offer you a renewal. If Canada’s Big Six banks take a pass, you might need to work with an alternative lender.
Alternative lenders can be a lifesaver at renewal, as they provide an option for homeowners with high debt service ratios and lower credit scores. However, their rates are often higher than what you’ll find at banks and credit unions.
The cost of living
Mortgage calculators don’t usually factor in day-to-day expenses, but these costs need to be accounted for when budgeting for your renewal.
Estimate your monthly spend on groceries, gas, utilities and other essentials, and then add in your non-essential spending, like subscriptions, dining out and shopping. You can’t really know whether you can afford your renewal until you understand the extent of your monthly spending.
Your mortgage payment history
Chances are you’ve been making your payments on time for the duration of your current mortgage term. If so, finding a lender to renew with shouldn’t be an issue.
If you’ve missed or been late on any payments, though, finding a lender might require a little more time, or the efforts of a mortgage broker. In this scenario, starting the mortgage renewal process early is a must.
Best mortgage renewal rates in Canada
Compare offers from Canada’s top mortgage lenders and brokers.
Strategies for getting a lower mortgage payment at renewal
Let’s say you’ve used a mortgage renewal calculator and the results are encouraging. What can you do to make your renewal even more affordable?
Negotiate and shop around
Never accept your current lender’s initial renewal offer. It likely won’t be their best. Ask them how much they can lower the rate and then compare it to what else is on the market.
Renewal may be an opportunity to work with a mortgage broker, who has access to multiple lenders. A broker can do the comparison — and eventual negotiation — for you.
Re-amortize
Extending your amortization period will shrink your monthly payments by spreading your mortgage out over a longer period of time. It’s a short-term solution if renewal will otherwise be too expensive.
The main drawback with re-amortizing is that you’ll pay more interest overall. It’ll take longer for you to own your home outright, too.
Make a lump-sum prepayment
You may be able to prepay a significant portion of your remaining mortgage balance at renewal. This is an excellent opportunity to secure a lower payment.
Not all lenders or mortgage products are the same, so make sure you consult your mortgage contract, and your lender if necessary, to understand your prepayment options at renewal.
8Twelve has partnered with over 65 Canadian mortgage lenders to provide competitive rates on over 7,000 mortgage products. 8Twelve can quickly match you with a lender and mortgage type that meets your needs — even if your financial situation is unique.
Frequently asked questions
When is the best time to start the mortgage renewal process?
When is the best time to start the mortgage renewal process?
Starting the mortgage renewal process early is generally a good move. It allows you additional time to assess your financial situation, compare rate offers, and find the lender and mortgage for your current needs. You can generally start the renewal process up to four months before your renewal date.
What’s the difference between renewing and refinancing a mortgage?
What’s the difference between renewing and refinancing a mortgage?
Renewing and refinancing both involve signing a new mortgage contract, but renewal is mandatory while refinancing is optional. You have to renew and sign a new mortgage contract at the end of every term until your mortgage is paid in full. Refinancing is voluntarily breaking your mortgage contract to secure new loan terms or access the equity you have in your home.
Can I avoid the mortgage stress test at renewal?
Can I avoid the mortgage stress test at renewal?
If you stay with your current lender, you should avoid another stress test. If you switch lenders, you’ll only be stress tested if you have an uninsured mortgage and you’re changing the mortgage amount or the amortization period.
What’s the best advice for someone renewing their mortgage?
What’s the best advice for someone renewing their mortgage?
The best thing you can do at renewal is weigh your options. Consider your lender’s initial renewal offer, but also see what else is available. Compare rates and products to ensure your next mortgage aligns with both your current finances and future plans.
What happens if I don’t renew my mortgage?
What happens if I don’t renew my mortgage?
If you don’t take action by your mortgage renewal deadline, the loan will still renew but you’ll have no input on the terms or conditions. You’ll likely be put into a short-term mortgage with a high interest rate, so letting your mortgage lapse without a new contract in place could lead to a massive spike in your monthly payment.
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Clay Jarvis
Clay Jarvis