Mortgage Renewal Calculator
With a wave of low pandemic-era mortgages renewing, your payment could jump. See exactly how much by comparing your current rate to today's rate on your remaining balance — and what it costs you per year.
Years left to pay off — not your term length
The rate you're coming off
Today's rate you'd renew at
Your new monthly payment
$2,204.57
at 4.49% over 20 yrs
Current payment
$1,852.46
at 2.5%
Payment increase
+$352/mo
+19.01%
Renewing at 4.49% adds about $4,225 a year. Shopping your renewal — not just signing the lender's offer — is the single easiest way to cut that.
Why renewals are a big deal right now
A large share of Canadian mortgages were locked at historic lows in 2020 and 2021. As those five-year terms come up for renewal, many homeowners are moving from rates near 2% to rates closer to 4.5%, which can add hundreds of dollars to the monthly payment. Knowing your number ahead of time lets you plan — and shop — instead of being surprised by the renewal letter.
Three ways to soften the increase
- Shop the rate. The renewal offer is rarely the best available rate. Comparing lenders costs nothing and there is no penalty to switch when your term ends.
- Make a lump-sum payment. Most mortgages allow a prepayment at renewal; reducing the balance lowers the new payment.
- Re-examine your amortization. If cash flow is tight, lengthening the remaining amortization lowers the payment; if you can manage it, keeping it short saves interest.
Frequently asked questions
How much will my mortgage payment go up at renewal?+
It depends on the gap between your old rate and today's. As an example, a $350,000 balance with 20 years left moving from 2.5% to 4.49% sees the payment rise from about $1,852 to $2,205 a month — roughly $352 more, or about $4,225 a year. Enter your own numbers above to see your figure.
Should I just sign my lender's renewal offer?+
Usually not without comparing. Lenders know most people sign the first offer, so it is rarely their best rate. Shopping your renewal — or having a mortgage professional do it — often beats the offered rate, and switching lenders at renewal carries no penalty because your term is already ending.
What's the difference between my term and my amortization?+
Your amortization is the total time to pay off the mortgage (often 25 years to start), while your term is the length of your current rate contract (commonly 5 years). At renewal you sign a new term on the remaining balance and remaining amortization. This calculator uses your remaining amortization, not your term.
Can I change my payment frequency or amount at renewal?+
Yes. Renewal is a good moment to adjust. Switching to accelerated bi-weekly payments or keeping your payment the same even though your balance dropped can shave years of interest off the mortgage. A hômm mortgage partner can model the options with you.
When should I start looking at my renewal?+
About four to six months before your term ends. Many lenders let you lock a rate in advance, which protects you if rates rise before your renewal date and lets you switch lenders smoothly if a better offer is out there.
More hômm calculators
Don't just sign the renewal offer
Renewal is the easiest time to save — there's no penalty to switch. Let a hômm mortgage partner shop your renewal before you commit.
Estimates are for general information only and are not financial advice or a mortgage approval. Rates, premiums, and rules were last reviewed 2026-06-01. Confirm exact figures with your lender, lawyer, and a hômm REALTOR®.