Canadian Mortgage Comparison Calculator — See What the Rate Difference Costs
Every 0.25% in rate matters — on a $700,000 mortgage, it's roughly $3,600 over 5 years. Enter your bank's rate and a broker's rate to see the exact dollar difference in monthly payment, interest paid, and your balance at renewal. Canadian semi-annual compounding is applied automatically.
What you'll need
- Home purchase price and down payment
- Rate A — your bank's quoted rate
- Rate B — a broker or alternate lender rate
How it works
Enter purchase price and down payment
We calculate CMHC automatically and set the mortgage amount for all scenarios.
Enter Rate A and Rate B
Start with your bank's quoted rate as Rate A and enter a broker or credit union rate as Rate B. Differences of 0.2–0.5% are common.
See side-by-side comparison over 5-year term
We compare monthly payment, total interest paid over 5 years, principal paid, and balance at renewal — for Rate A, Rate B, and Rate A with a 30-year amortization.
$700K Mortgage — 5.49% vs 4.99% Over 5-Year Term
| Rate | Monthly Payment | Interest over 5yr | Balance at Renewal |
|---|---|---|---|
| 5.49% (25yr) | $4,337 | $181,400 | $644,200 |
| 4.99% (25yr) | $4,127 | $163,800 | $635,000 |
| Difference | $210/mo less | $17,600 saved | $9,200 lower |
A 0.5% rate reduction saves $17,600 in interest over 5 years and leaves your balance $9,200 lower at renewal. Savings compound over subsequent terms.
Frequently asked questions
How much does a 0.5% rate difference cost over a Canadian mortgage?
On a $600,000 mortgage, a 0.5% rate difference costs roughly $1,800/year or $9,000 over a 5-year term in extra interest. The gap widens on larger balances. A mortgage broker can often save 0.2–0.5% vs. a bank's posted rate, which is why shopping around is critical — especially at renewal.
Should I choose a fixed or variable rate mortgage in Canada?
Fixed rates offer payment certainty — your mortgage rate is locked for the term (1–5 years typically). Variable rates fluctuate with prime rate. Historically in Canada, variable rates have saved money over 20+ year periods, but 2022–2023 showed the risk of rate hike cycles. Choose fixed if you need payment certainty; variable if you can absorb fluctuation and believe rates will fall.
What is the difference between amortization and term in Canada?
Amortization is the total life of your mortgage (e.g. 25 years). Term is how long your current rate is locked in — typically 1–5 years. After each term, you renew at current market rates. A shorter amortization means higher payments but lower total interest. Most Canadians choose 25 years; first-time buyers on insured mortgages can choose up to 30 years.
Is a shorter mortgage term always better in Canada?
Not necessarily. A 1-year term may have a lower rate but exposes you to renewal risk — you may renew into a higher rate environment. A 5-year fixed provides rate certainty but may miss out if rates fall. The penalty for breaking a fixed-rate term early (IRD) is typically much higher than for a variable or short-term mortgage.
A lower rate is always better — see exactly how much better.
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