Calculator
Mortgage renewal payment shock calculator
If you signed at 1.99% in 2021, expect your payment to change at renewal. This works out the new payment at today's rates, then calculates 3 ways to lower it using your own balance.
Your numbers
What you borrowed at the start of the term that's ending.
Most mortgages signed in 2020 and 2021 were between 1.5% and 2.5%.
Pre-filled with our published 5-year fixed, as of September 21, 2026 at 9:00 a.m. MT.
The amortization when the mortgage started, not what's left.
The term that's ending now.
Options and details(6)
Ways to lower the payment
Each one is calculated from your own figures.
At renewal you can prepay any amount with no penalty.
Leave at 0.00% to skip this option. A 2- or 3-year term often prices below a 5-year.
Your current mortgage
Re-amortizing an insured mortgage beyond its original amortization is generally not permitted.
Your payment stays the same and the split between interest and principal moves.
Renewal date
Saved with your summary below. It doesn't change the figures.
Rate taken from the RateLens published table, current as of September 21, 2026 at 9:00 a.m. MT. Rules, premium tiers and fee schedules current as of September 16, 2026.
Your payment at renewal
$2,560.59every month
Up from $2,163.38. That’s +$397.21 a payment, or 18.4% more.
$397 more, every month
- Balance at renewal
- $420,518After 5 years of payments
- Remaining amortization
- 20 yearsOf the original 25 years
- Payment change
- +$397.21+18.4%
- Interest over the new term
- $77,989At 4.09%, over 5 years
1 option is available on these figures
Ways to lower the new payment
Every figure is calculated from your balance at renewal. If an option isn't available, its row stays in the table and says why.
| Option | New payment | Remaining increase | Trade-off |
|---|---|---|---|
| Do nothingRenew at 4.09% | $2,560.59 | +$397.21+18.4% | Every row below is compared with this one. |
| Re-amortize back to 25 years | $2,232.58 | +$69.20+3.2% | A longer amortization lowers the payment but increases total interest. |
| Put a lump sum down at renewalNot available | — | — | No lump sum entered. |
| Take a shorter term at a lower rateNot available | — | — | No shorter-term rate supplied. |
- Compounding
- Semi-annual
- Balance at renewal
- $420,518
- Re-amortize target
- 25 years
- Frequency
- every month
- Rules as of
- September 16, 2026
The taller the bar, the more you pay each month. Compare each bar with your current payment.
- Today$2,163.38
- At renewal$2,560.59
- Re-amortize back to 25 years$2,232.58
| Jurisdiction | Payment |
|---|---|
| Today | $2,163.38 |
| At renewal | $2,560.59 |
| Re-amortize back to 25 years | $2,232.58 |
Ask Daniel for your renewal rate
Starting 4 months before maturity, we shop 30+ lenders, hold the rate you choose for 120 days, and test the options above against your income. It costs you nothing. On most files, the lender pays us.
Book a 15-minute callNew payment /mo
$2,560.59
How this is calculated
Every figure on this page comes from one tested calculation engine. Here’s what it does.
How we find your balance at renewal
Your new payment depends on your balance at renewal, which your lender may not have told you yet. We find it by running the whole term through the payment schedule: the original principal at the original rate, payment by payment, with interest rounded to the nearest cent before the principal portion is worked out. We don’t use a shortcut formula. On $500,000 at 2.19% over 25 years, 5 years of payments leaves $420,517.91.
The new payment is that balance at the renewal rate over the remaining amortization, which is 20 years, not 25. Stretching it back to 25 years is the first option below. We don’t do it by default, because re-amortizing automatically would make the increase look smaller than it is.
How much the payment goes up
On the same figures, renewing at 4.49% takes the payment from $2,163.38 to $2,648.75. That’s +$485.37 a month, or +22.4%.
How each option is calculated
Re-amortize. Stretching the remaining 20 years back to 25 drops the payment to $2,325.12, an increase of +$161.74 instead of +$485.37. It costs more in total interest. On an insured mortgage, extending beyond the original amortization is generally not permitted. If you mark the mortgage as insured, this option stays in the table and shows as unavailable.
A lump sum at renewal. Maturity is the one day in your contract when you can prepay any amount with no prepayment charge. We take your cash off the balance first, then work out the new payment.
A shorter term. Terms of 2 or 3 years often price below 5-year rates. Taking one lowers the payment now, but you’ll renew sooner at whatever rates exist then. If you leave the rate at 0.00%, the calculator says no rate was entered instead of guessing one.
Trigger rates on variable mortgages with a fixed payment
Some variable mortgages keep the payment the same and let the split between interest and principal move with prime. Your trigger rate is the rate at which the whole payment goes to interest. Above it, the balance grows instead of shrinking. This is called negative amortization, and many borrowers were in it through 2023 without realizing it.
This tool works out the trigger rate from your balance and your payment. It can’t tell you whether you’ve passed it, because that depends on your balance history, which we can’t see. Check your last statement. If the balance is higher than it was a year ago, you’ve passed it.
If your payment goes down
If you signed at a rate above today’s market, renewing lowers your payment, and the calculator shows that too. The useful step then is locking in that rate before rates move back up.
What this calculator leaves out
It assumes every payment was made on schedule with no prepayments. It doesn’t know your income, your other debts or whether a lender will approve the renewal you want, so treat the result as a planning number. Check it against the debt ratios if the new payment looks tight.
Common questions
What is mortgage payment shock?
Payment shock is the jump in your payment when your term ends and you renew at a very different rate. It mostly affects Canadians who signed 5-year terms in 2020 and 2021, at rates between roughly 1.5% and 2.5%.
On a $500,000 mortgage at 2.19% renewing at 4.49%, the monthly payment rises from about $2,163 to about $2,649. That’s roughly $485 a month, or 22.4% more.
How can I reduce my payment at renewal?
There are 3 main options, and the calculator above works out each one on your own balance.
Re-amortize. A longer amortization lowers the payment and raises total interest. It’s generally not permitted on an insured mortgage beyond its original amortization.
Pay a lump sum at renewal. Maturity is the one day you can prepay any amount with no charge.
Take a shorter term at a lower rate. The payment is lower now, but you renew sooner at whatever rates exist then.
Shopping for a lower rate works alongside all 3, and it’s usually worth more than any of them.
Can I extend my amortization at renewal to lower the payment?
Sometimes. Your current lender may agree to it when you renew, and a new lender can do it as part of a refinance. There are 2 limits.
An insured mortgage generally can’t be re-amortized beyond its original amortization, because the insurance was written against that schedule. And no Canadian lender writes past 30 years. Insured 30-year amortizations are only for first-time buyers and buyers of newly built homes.
Extending lowers your monthly payment, but it always increases the total interest you pay.
What is a trigger rate?
A trigger rate is the rate at which your whole payment goes to interest and none of it reaches principal. It applies to variable-rate mortgages with a fixed payment, where the payment stays the same while the share going to interest moves with prime.
Past that point, unpaid interest is added to your balance and the mortgage grows. This is called negative amortization. A calculator can’t tell you whether you’ve passed it, but your statement can. If the balance is higher than it was a year ago, you have.
Do I have to re-qualify at renewal?
Not if you stay with your current lender. A straight renewal has never required the stress test. And since November 2024, you don’t have to re-qualify to move an uninsured mortgage to a new federally regulated lender either, as long as you don’t increase the balance or extend the amortization.
So a higher payment doesn’t lock you in with your current lender, even though many people renewing assume it does. Compare the offers.
What if I can't afford the new payment at renewal?
Start early, ideally 4 months before maturity and not 4 weeks. The options above are the ones you can calculate yourself.
Daniel can also look at consolidating higher-rate debt into the mortgage, a longer amortization through a refinance, or a lender whose qualifying rules fit your situation better. Alberta credit unions are provincially regulated and aren’t bound by OSFI Guideline B-20, which sometimes matters.
Don’t wait for the renewal letter. Call (825) 797-5417, Mon–Fri 9–5 MT.
What to work out next
- Renewal comparisonCompare your lender's renewal offer with the market, in payment and equity.
- PrepaymentSee where a lump sum does the most good and what your prepayment privilege allows.
- Maximum purchase priceIf the new payment looks tight, check it against the ratios lenders use.
- Refinance break-evenConsolidating debt or taking out equity at the same time changes the numbers.
- Mortgage penalty (IRD)If you're thinking of moving before maturity, start with the penalty.
- 25 vs 30-year amortizationWhat a longer amortization saves each month, and what it costs in total.
This calculator provides estimates only. Results are based on the information you enter and on assumptions that may not reflect your actual qualification, rate or costs. These include semi-annual, not-in-advance compounding for fixed rates, as required under section 6 of the federal Interest Act, and the mortgage default insurance premium tiers published by CMHC, Sagen and Canada Guaranty. It is not mortgage advice, a quote, a rate hold, a pre-approval or an offer of credit, and RateLens does not guarantee its accuracy or completeness. Your actual rate, payment, default insurance premium and closing costs will depend on your credit profile, income, the property, the lender’s current rates and policies, and other factors confirmed during a full application.
Estimates assume a straight switch with no change to your mortgage amount or amortization. Switching lenders may involve discharge, appraisal, legal or assignment fees; we will tell you which apply to your file.
If you have a variable-rate mortgage with a fixed payment, rising rates mean more of each payment goes to interest and less to principal. Your trigger rate is the rate at which the entire payment goes to interest. Past that point your balance can increase. This calculator does not model trigger-rate effects. Speak to Daniel De Sousa, Mortgage Associate, about your specific mortgage.
Rules snapshot: September 16, 2026. Rates shown are calculation assumptions, not confirmed offers. Speak with Daniel De Sousa, Mortgage Associate, for a personalized quote. Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage, a licensed mortgage brokerage licensed by RECA.
Daniel De Sousa, Mortgage Associate, is licensed by the Real Estate Council of Alberta and registered with Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage.
Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage is a mortgage brokerage licensed by the Real Estate Council of Alberta (RECA). Verify our licence on RECA ProCheck(opens in a new tab)
RateLens is a trade name used by Daniel De Sousa, Mortgage Associate, licensed in Alberta by the Real Estate Council of Alberta and registered with Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage.
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Get a renewal rate quote
Starting 4 months before your renewal, we shop 30+ lenders, hold the rate you choose for 120 days, and test these options against your income.
No credit check, and no commitment.