Calculator
Mortgage renewal calculator for switching lenders
Put your lender's renewal offer next to a competing rate and see the full difference over the term. A lower rate lowers your payment and pays down more principal. About a third of the benefit is usually equity, which a payment-only comparison doesn't show.
Your numbers
What you'll owe at maturity. It's on your renewal letter.
The rate in the letter. It's almost never their lowest.
Pre-filled with our published 5-year fixed, as of September 21, 2026 at 9:00 a.m. MT.
How long is left. A straight switch can't extend it.
The new term you'd sign. 5 years is the most common term in Canada, but you can choose another.
Advanced options(5)
When it renews
Renewal date
Rate holds typically last 120 to 150 days, so we can start about 4 months before this date.
Your current mortgage
If you put less than 20% down and haven't refinanced since, it probably is.
Taking out equity or stretching the amortization makes this a refinance, not a switch.
Legal, appraisal and discharge. Most lenders cover these on a switch, so leave it at $0 until you know.
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.
Switching is worth this over 5 years
$16,852
$11,441 of lower payments plus $5,411 of extra principal paid down. 32% of the benefit is equity, not cash flow.
−0.90% on $400,000
- Payment if you stay
- $2,626.35every month
- Payment if you switch
- $2,435.66$190.69 less each time
- Interest saved over the term
- $16,852Across 60 payments
- Extra principal paid down
- $5,411Equity from the lower rate, on top of the payment saving
Find out whether your mortgage is insured
Most lenders cover the cost of a switch
Payments and principal over the term
Most people compare the payments. The balance matters too, because a lower rate pays down more principal with every payment.
| Measure | Stay at 4.99% | Switch at 4.09% |
|---|---|---|
| Paymentevery month | $2,626.35 | $2,435.66 |
| Payments over the 5-year term | 60 | 60 |
| Interest paid over the term | $91,035 | $74,183 |
| Balance at the end of the termWhat you renew next time | $333,454 | $328,044 |
| Payment saving over the term | — | $11,441 |
| Extra principal paid down | — | $5,411 |
| Total 5-year benefit | — | $16,852 |
- Compounding
- Semi-annual
- Amortization
- 20 years
- Frequency
- every month
- Switch costs
- $0
- Rules as of
- September 16, 2026
Both lines start at the same balance. The gap between them is the extra principal a lower rate pays down, which a payment-only comparison misses.
- Switch at 4.09%
- Stay at 4.99%
| Year | Switch at 4.09% | Stay at 4.99% |
|---|---|---|
| 0 | $400,000 | $400,000 |
| 1 | $386,750 | $387,970 |
| 2 | $372,952 | $375,331 |
| 3 | $358,585 | $362,054 |
| 4 | $343,623 | $348,107 |
| 5 | $328,044 | $333,454 |
Compare lenders before you sign your renewal
When you sign the renewal letter, your lender has no competition. We compare 30+ lenders on one application, hold a rate for 120 days, and tell you when the offer you have is already good.
- What if my payment jumps? See the increase at today’s rates and 3 ways to lower it.
- What if I break my mortgage early instead? There’s no charge at maturity, but there usually is before it.
5-year benefit
$16,852
How this is calculated
Every figure on this page comes from one tested calculation engine. Here’s what it does.
How the benefit of switching is calculated
Most renewal calculators only compare payments. That understates the benefit by roughly a third, because a lower rate does 2 things: it lowers the payment, and it puts more of each payment toward principal. So this comparison has 2 parts:
benefit = (payment_stay − payment_switch) × payments_in_term + (balance_stay − balance_switch) − switch_costs
Take a $380,000 balance with 20 years of amortization left, staying at 4.99% or switching to 4.29% over a 5-year term. Switching saves $8,490.00 in payments, pays down $3,974.19 more principal, and gives a total benefit of $12,464.19. Nearly a third of that is equity, not cash flow, and you won’t see it if you only compare the 2 payments.
Both balances come from running the full schedule at each rate instead of a shortcut formula. Every total shown comes from that schedule.
The straight-switch stress test exemption
Since November 2024, OSFI doesn’t require you to re-qualify at the minimum qualifying rate to move an uninsured mortgage to another federally regulated lender on a straight switch. A straight switch means no increase in the loan amount and no extension of the amortization.
Before that change, if your income hadn’t kept up with rates, you were effectively locked in. You couldn’t pass the stress test anywhere else, so your own lender could offer whatever it liked. That’s no longer the case. If your mortgage is uninsured and you aren’t taking money out, you can shop freely.
Insured mortgages work differently, but they aren’t worse off. An insured mortgage generally transfers with its insurance intact, and you don’t pay a second premium. The eligibility rules differ, so confirm them before you sign. How a switch works.
Switch costs
A straight switch usually involves legal, appraisal and sometimes assignment costs of roughly $300 to $1,000. Most lenders cover them to win your business, so the field starts at $0 instead of a guess. Enter your own figure as soon as you have one, and the benefit above will be shown net of it.
When a switch becomes a refinance
Increasing the balance, taking out equity or extending the amortization all take you outside the straight-switch rules. That makes it a refinance: the stress test applies, the maximum is 80% of the property value, and it can’t be default-insured. Run the refinance break-even instead.
When to start shopping
Rate holds typically last 120 to 150 days, so you can start shopping about 4 months before maturity, before the renewal letter arrives. At maturity there’s no prepayment charge, whatever you do. Before maturity there usually is, and that’s a different calculation.
What this calculator leaves out
It compares 2 rates on identical terms. It doesn’t model a lender’s prepayment privileges, portability rules, penalty method or how it treats a future refinance. Any of these can be a reason to choose one lender over another at the same rate, and Daniel can walk you through them.
Common questions
Do I have to pass the stress test to switch lenders at renewal?
Not on an uninsured straight switch. Since November 2024, OSFI doesn’t require you to re-qualify at the minimum qualifying rate to move an uninsured mortgage to another federally regulated lender, as long as you don’t increase the loan amount or extend the amortization.
This was a big change. Before it, if your income hadn’t kept up with rates, you couldn’t qualify anywhere else, so your lender faced no competition for your renewal.
Insured mortgages have their own transfer rules and generally move with the insurance intact. If you increase the balance or the amortization, it becomes a refinance and the stress test applies again.
Is there a penalty for switching lenders at renewal?
No. At maturity your contract has ended, so there’s no prepayment charge for moving to another lender.
Breaking your mortgage before maturity is different. It usually costs the greater of 3 months’ interest or an interest rate differential. Estimate that here.
A switch can have small administrative costs, typically $300 to $1,000 for legal and appraisal, and most lenders cover them.
How much can switching lenders at renewal save?
It depends on the gap between your offer and the market. On a $380,000 balance with 20 years of amortization left, closing a 0.70 percentage point gap (4.99% down to 4.29%) is worth about $12,464 over a 5-year term. That’s roughly $8,490 in lower payments and $3,974 in extra principal.
With a larger balance or a wider gap, it’s more. If your offer is already competitive, it can be nothing, and this tool will show that.
When should I start shopping my mortgage renewal?
About 4 months before maturity. Rate holds typically last 120 to 150 days. Starting around 120 days out lets you lock today’s rate and still take a better one if rates fall.
Your lender’s renewal letter usually arrives later than that, and its first offer is rarely its best. By the time the letter arrives, much of your time to negotiate has passed.
What if my lender's renewal offer is competitive?
Then stay. When switching doesn’t pay, this calculator shows a negative benefit instead of hiding it.
There are also good reasons to stay at a slightly higher rate. Better prepayment privileges, a more favourable penalty method, or a portability feature you’re likely to use can each be worth more than a few basis points. Ask Daniel to compare those along with the rate.
Can I extend my amortization when I renew?
Not on a straight switch. Extending the amortization takes you outside the straight-switch rules and makes it a refinance. The stress test applies, the maximum loan is 80% of the property value, and it can’t be default-insured.
Your current lender may agree to extend it when you renew with them. Keep in mind that extending lowers the payment by increasing total interest. It helps your monthly cash flow and costs more overall.
Does a mortgage switch need a new appraisal and a new credit check?
A credit check, usually yes. A new lender is extending you credit, so it will pull your credit report. An appraisal is often required, but the new lender often pays for it, and on lower loan-to-value mortgages many lenders use an automated valuation instead.
Daniel sends one application to several lenders with a single credit pull, so comparing lenders through us doesn’t multiply the hits on your credit report.
What to work out next
- Payment shockIf you're renewing out of a pandemic-era rate, see how much your payment rises and 3 ways to lower it.
- Mortgage penalty (IRD)Breaking your mortgage before maturity is a different question, and usually an expensive one.
- Refinance break-evenTaking out equity at the same time makes this a refinance, with its own break-even.
- PrepaymentRenewal is the one day in your term when you can prepay any amount with no penalty.
- Amortization scheduleSee your balance at the end of the term, payment by payment.
- Stress testIf you're borrowing more or extending the amortization, the stress test applies again.
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.
Qualifying rate methodology: you are qualified at the higher of your contract rate plus 2 percentage points or the 5.25% minimum qualifying rate, in accordance with OSFI Guideline B-20. The stress test does not apply to a straight renewal with your existing lender, and since November 2024 does not apply to an uninsured straight switch. Lender debt-service ceilings shown (GDS 39% / TDS 44%) are insurer guidelines; individual lenders may apply higher or lower limits at their discretion.
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.
RateLens · 4990 92 Ave NW #105, Edmonton, AB T6B 2V4 · (825) 797-5417 · hello@ratelens.ca
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Your renewal letter is your lender's first offer
We take one application to 30+ lenders and hold a rate for 120 days while you decide. If your offer is already good, we'll tell you.
No credit check, and no commitment.