Mortgage Renewal Calculator — Stay or Switch?
Your lender's first renewal offer is rarely their best. Compare it to competing rates — a 0.5% difference on a $400,000 mortgage saves $6,000+ over 5 years. Since November 2024, you don't need to pass the stress test if you stay with your current lender.
What you'll need
- Mortgage balance at renewal
- Rate your lender is offering
- Best competing rate you've found
- Remaining amortization years
- Household gross income (for stress test check)
How it works
Enter your renewal balance and rates
Your current mortgage balance, what your lender is offering, and the best competing rate you've found. Even a 0.5% difference matters significantly over 5 years.
Enter your income and remaining amortization
We check whether you qualify under the OSFI stress test if you switch lenders (rate + 2% or 5.25%, whichever is higher). No stress test applies if you stay.
See your 5-year savings from switching
You'll see monthly savings, total 5-year interest savings, and a clear recommendation on whether switching lenders is worth the effort.
Stay vs. Switch: $450,000 Mortgage, 5.99% vs 5.49%
| Metric | Stay (5.99%) | Switch (5.49%) | Savings |
|---|---|---|---|
| Monthly payment | $2,891 | $2,782 | $109/mo |
| 5-year interest | $124,300 | $113,800 | $10,500 |
| Legal costs to switch | — | ~$1,200 | — |
| Net 5-year savings | — | — | ~$9,300 |
Based on 25-year amortization. Legal fees vary $800–$1,500. Rate-hold available up to 120 days at most lenders.
Frequently asked questions
Do I have to pass the stress test when renewing my mortgage in Canada?
No — since November 2024, you no longer need to pass the stress test when renewing with your existing lender (even if switching to a new product). However, if you switch to a different lender at renewal, the stress test still applies at the greater of your new rate + 2% or 5.25%.
Should I switch lenders at mortgage renewal?
It depends on the rate difference and whether you qualify under the stress test. A 0.5% lower rate on a $400,000 mortgage saves roughly $100/month and $6,000 over a 5-year term — often worth the effort and legal fees (~$1,000–$1,500) to switch. Get quotes from at least 3 lenders before accepting your renewal letter.
When should I start shopping for mortgage renewal rates?
Start 4–6 months before your renewal date. Most lenders will hold a rate for 90–120 days. Early shopping gives you time to negotiate with your current lender using competing offers.
Can I change my amortization at renewal?
Yes, you can extend or shorten your remaining amortization at renewal, subject to lender approval. Extending reduces your monthly payment but increases total interest. Shortening builds equity faster.
Authoritative resources
Don't sign your renewal letter without running the numbers first.
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