What will your mortgage renewal really cost?
Compare your renewal offer against another rate, see the payment change, and understand straight-switch rules.
Example rateDefault of 4.49% is an illustrative assumption, not a live market rate. Enter your own rate.
Inputs: current balance $420,000; current rate 2.39%; current payment $1,980/month; remaining amortization 20 years; offer 4.89%; comparison 4.49%; term 5 years. Educational estimate, not a lender offer.
New payment (offer)
$2,735
Monthly change
+$755
Annual change
+$9,060
| Over the 5-year term | Renewal offer | Comparison |
|---|---|---|
| Rate | 4.89% | 4.49% |
| Monthly payment | $2,735 | $2,645 |
| Interest paid | $93,614 | $85,738 |
| Principal repaid | $70,489 | $72,991 |
| Balance at term end | $349,511 | $347,009 |
The comparison rate would save about $7,876 in interest over the term ($90/month). Switching costs (legal, discharge, appraisal) are not included.
Straight-switch assessment
You may be eligible for the straight-switch stress-test exemption
Eligibility depends on both lenders being federally regulated. The prescribed OSFI MQR may not apply to an eligible straight switch. The receiving lender still assesses the application under its underwriting requirements.
How we calculated this
New payments amortize your current balance over the remaining amortization at each rate using a semi-annual compounding model convention (lender terms may vary). Interest over the term is calculated month by month. Results are educational estimates, not advice or an offer.
Default assumptions (editable estimates, not government-mandated)
- Legal fees: $2,000
- Title insurance: $350
- Appraisal: $400
- Home inspection: $500
- Heating: $100/month
- Property tax: 1.00% of price per year
- Comfortable scenario: 32% GDS / 40% TDS (our assumption)
Regulatory parameters and sources
- CMHC — Homeowner Purchase eligibility requirements
Insured mortgage eligibility requires a purchase price strictly BELOW this value.
Effective 2024-12-15 · Source checked 2026-09-25
- CMHC — Homeowner Purchase eligibility (1–2 units)
Effective 2024-12-15 · Source checked 2026-09-25
- CMHC — Premium information for homeowner loans
30-year insured amortization available to first-time buyers and buyers of new builds; a 0.20% premium surcharge applies to amortizations over 25 years. Nontraditional down payment: 4.50% at 90.01–95% LTV only, 1–2 units, lender credit criteria apply.
Effective 2024-12-15 · Source checked 2026-09-25
- CMHC — Home Start eligibility and premium information
30-year high-ratio loans below $1.5M for an owner-occupied home where at least one borrower meets CMHC's first-time definition or the home is newly built. Traditional premiums: 3.00%, 3.30%, 4.20%. Nontraditional 90.01–95%: 4.70%; lender eligibility still applies. No additional surcharge.
Source checked 2026-09-25
- Provincial tax on insurance premiums — Ontario RST 8%; Revenu Québec 9%; Saskatchewan PST bulletin 6%
Payable in cash at closing; cannot be added to the mortgage. Quebec rate is 9% through Dec 31, 2026; Revenu Québec announced 9.975% after that date (https://www.revenuquebec.ca/en/press-room/tax-news/details/2026-04-09/harmonization-of-the-insurance-premiums-tax-rate-with-the-qst-rate/). Saskatchewan: https://sets.saskatchewan.ca/rptp/wcm/connect/b9fd728b-b4fc-4a9e-a59e-c542fb87d6f1/PST.073%2BInsurance%2BContracts.pdf?MOD=AJPERES
Effective 2024-01-01 · Source checked 2026-09-25
- OSFI Minimum Qualifying Rate
Qualifying rate = greater of contract rate + 2% or 5.25%.
Effective 2021-06-01 · Source checked 2026-09-25
- CMHC — Homeowner Purchase eligibility (GDS/TDS)
CMHC qualification benchmark for insured mortgages. Individual lender requirements may differ.
Effective 2021-07-05 · Source checked 2026-09-25
- Ontario Ministry of Finance — Land Transfer Tax
Rates for residential properties with one or two single-family residences (page updated 2026-04-22). $4,000 first-time refund: 18+, never owned anywhere, spouse rules, occupy within 9 months, citizen/PR, apply within 18 months, prorated for partial ownership (ontario.ca/document/land-transfer-tax/land-transfer-tax-refunds-first-time-homebuyers). Excludes Non-Resident Speculation Tax.
Effective 2017-01-01 · Source checked 2026-09-25
- City of Toronto — Municipal Land Transfer Tax
Effective 2026-04-01 · Source checked 2026-09-25
- Model convention: nominal rate compounded semi-annually, not in advance (Interest Act s. 6 allows a half-yearly or yearly statement)
Calculator convention only; the Interest Act does not mandate semi-annual compounding for every mortgage. Lender terms may vary.
Effective 1985-01-01 · Source checked 2026-09-25
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What to check before renewing
Compare the payment and total interest over the same term and remaining amortization, not just the advertised rate. Check the balance in your latest statement, the rate type, prepayment options, penalties, and any fees to change lenders. The estimate excludes switching costs.
Switching lenders at renewal
You may be eligible for the straight-switch stress-test exemption if your uninsured mortgage moves between federally regulated lenders without increasing its loan amount or remaining amortization. The prescribed OSFI minimum qualifying rate may not apply to an eligible straight switch. The receiving lender still assesses the application under its underwriting requirements.
Read the renewal planning guide →