A practical mortgage renewal checklist

Gather the numbers first

Find your current mortgage balance, remaining amortization, present monthly payment, your lender's renewal offer and the length of the new term. Enter an alternative rate only as a comparison assumption, not as a promised market offer.

Our renewal calculator applies a semi-annual compounding model convention to monthly payments and estimates interest paid over the selected term. It assumes the same remaining amortization and balance for both offers.

Compare like with like

A lower payment is not always a lower overall cost if amortization changes. Compare interest paid and remaining balance after the term, and ask about prepayment privileges, portability, penalties, legal, discharge or appraisal costs that a simple rate comparison excludes.

The calculator shows the monthly and annual change from the current payment, but it does not project future rates after the term or account for fees to switch lenders.

Check a straight switch carefully

For an uninsured mortgage transferred at renewal between federally regulated lenders without increasing the loan or remaining amortization, OSFI's prescribed minimum qualifying rate may not apply. This is not automatic approval: the receiving lender still underwrites the application.

Confirm whether both institutions are federally regulated and ask the receiving lender which documents and costs apply. An insured switch or a refinance is not the same scenario.

Questions worth asking

Ask each lender for the rate type, payment schedule, penalties for breaking the mortgage, prepayment options, transfer costs and when the offer expires. Keep a written copy of the terms so the comparison uses the same assumptions.