Canadian Mortgage Renewal Payment Calculator
Estimate how a renewal offer could change your mortgage payment and monthly cash flow. Use the balance and remaining amortization at the renewal date, not the original purchase amount or amortization.
Payment estimate
Enter all four values to see an estimate.
Interpretation: a positive change means higher estimated payments and cash outflow; a negative change means lower estimated payments and cash outflow.
Not an interest-savings comparison: the 12-month figure is the difference in payment cash flow only. This tool does not estimate total interest over the renewal term or lifetime, and it does not account for differences in principal repaid.
How the estimate works
Both payments use the balance you enter and the same remaining amortization. For a Canadian nominal annual rate compounded semi-annually, the model converts it to an effective monthly rate: (1 + annual rate ÷ 2)^(1/6) − 1. It then uses the standard level-payment amortization formula: payment = balance × monthly rate ÷ (1 − (1 + monthly rate)^−number of monthly payments). At 0% interest, payment is balance divided by the number of monthly payments.
The calculator reports monthly payments only, rounded to cents for display. It does not calculate lender approval or use a rate forecast. Your mortgage contract, payment timing, rate convention, payment frequency, fees, and lender calculations may differ. Compare the estimate with your renewal documents.
What this comparison does not show
This is a payment-shock estimate, not a full mortgage-cost comparison. It assumes each entered rate remains unchanged across the same remaining amortization solely to estimate the corresponding payment. It does not compare total interest, principal balances at the end of a term, fees, switching costs, insurance, taxes, prepayments, or variable-rate payment behavior. A lower payment is not by itself proof of lower total borrowing cost.
Official guidance
- FCAC Mortgage Calculator — official calculator used to check the monthly payment benchmark.
- FCAC: Renewing your mortgage — guidance on shopping around, negotiating, and possible costs when switching lenders.
- Interest Act, section 6 — statutory wording for blended mortgage payments referring to interest calculated yearly or half-yearly, not in advance.
For a renewal preparation checklist, see Mortgage Renewal in Canada: Plan for the Payment Before It Arrives. Use your lender’s written terms and consult a qualified mortgage professional about your specific contract.