Rate vs rate · Balance at renewal · Free
Canadian Mortgage Comparison Calculator
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.
Educational calculators — always consult a licensed professional before making financial decisions.
We'll calculate CMHC automatically based on your down payment.
Minimum 5% under $500K, 5–10% on $500K–$999K, 20% on $1M+.
Start with the rate your bank quoted you. We'll compare against other options.
Mortgage brokers often find rates 0.2–0.5% lower than posted bank rates.
Best rate saves
$18,011
in interest over the 5-year term — Rate B: 4.99% wins
Rate A: 5.49% · 25yr amort
Monthly payment
$3,903
Interest over 5yr
$164,882
Balance at renewal
$570,715
Rate B: 4.99% · 25yr amort
Best optionMonthly payment
$3,719
Interest over 5yr
$149,477
Balance at renewal
$566,359
Rate A, 30yr amort · 30yr amort
Monthly payment
$3,605
Interest over 5yr
$167,488
Balance at renewal
$591,183
Rate A vs Rate B Comparison
CMHC premium not required (20%+ down). Canadian semi-annual compounding. 5-year term comparison.
Your Saved Scenarios
No saved scenarios yet
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
What you'll get
- ✓Monthly payment difference — Between the two rates
- ✓Interest saved — Over the term
- ✓Balance at renewal — For each scenario
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.
About this calculator
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.
Back to the calculator ↑Canadian Mortgage Comparison Calculator is built and maintained by the RealCostIQ editorial team. Cost ranges and rates are checked against published industry data and contractor quotes, and revised when the underlying figures move. Read our data methodology or more about who builds this. Every calculation runs in your browser — no account, and none of your inputs are stored.
Cost ranges and rates here are checked against contractor quotes and published industry data. If a number still looks off, email Support@RealCostIQ.com and we'll review and fix it.